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Direct Labor Cost

Direct labor cost calculations are provided for an organization with four receptionists as their direct employees. Each receptionist works 8 hours per day, 6 days per week, for a total of 24 working days per month. Their hourly rate is P67.125. The total monthly direct labor cost for the four receptionists is P48,169.84. Each receptionist can serve 14 individuals per hour, for a total service capacity of 112 individuals per day. The total daily direct labor cost per service capacity is P19.17. With two receptionists per 8-hour shift, the total cost per pair of receptionists is P268.50.

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Moira C. Vilog
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48 views2 pages

Direct Labor Cost

Direct labor cost calculations are provided for an organization with four receptionists as their direct employees. Each receptionist works 8 hours per day, 6 days per week, for a total of 24 working days per month. Their hourly rate is P67.125. The total monthly direct labor cost for the four receptionists is P48,169.84. Each receptionist can serve 14 individuals per hour, for a total service capacity of 112 individuals per day. The total daily direct labor cost per service capacity is P19.17. With two receptionists per 8-hour shift, the total cost per pair of receptionists is P268.50.

Uploaded by

Moira C. Vilog
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Direct Labor Cost

An organization to be successful needs employees who are directed and inclined

with the organizational goals. Without these employees, no organization can function.

Below are the direct labor cost computations in iSpasyo.

*Direct labor hours worked per day=8 hours


*Total working days a week= 6 days
*Total working days in a month= 24 days (6 days a week* 4 weeks in a month)
*SSS based on SSS EE Contribution Table
*Philhealth based on the 2021 premium rate of 3.50% of salary. Shares equally divided between
employee and employer
*HDMF based on the 2% employee contribution.

Table 1
Monthly Salary

In iSpasyo the direct employees are the receptionists. They are considered the

major providers of iSpasyo services.

Each receptionist has an hourly rate of P67.125. It works for eight hours a day,

and for six days in a week. With a four receptionists the total net amount of direct labor

cost is P48,169.84.
* Service Capacity refers to individuals
* Two receptionists in every eight (8) hour shift=2 pair

Table 2
Total Direct Labor Cost based on Service Capacity

In iSpasyo each receptionist can cater 14 individuals per hour in a day. With

each receptionist having an eight (8) hour shift, service capacity per day will be 112

individuals. Dividing total direct labor cost per day by service capacity per day results to

P4.79 multiplied with the four (4) receptionists a day amounts to P19.17 total direct

labor cost per service capacity per day.

There are two receptionists in every eight hour shift thus results to two pair a day.

Therefore, the quotient of direct labor cost per day with the number of pairs results to

P268.50 which is the total cost per pair of receptionists.

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