How to Calculate the Direct Labor Used

In production, labor is classified as either direct or indirect. The direct labor used is the number of labor hours worked by people who worked directly on the production of products. Knowing how much direct labor you have used will allow you to estimate how many people you need to perform the work. Calculate the direct labor used by first distinguishing the direct laborers in your production and calculating their labor hours.

  1. 1.

    Identify the jobs that relate directly to the production of goods. These are jobs performed by any person who works directly on the production. For example, a person who operates a machine on the production line works directly on the product but the mechanic who repairs the machinery works indirectly on the production and should not be included.

  2. 2.

    Calculate the number of hours that each direct laborer works during the production period in question. If two laborers worked side by side to fold print materials for three hours, count the hours for each worker. Even though only three hours elapsed, the task counts as six hours.

  3. 3.

    Add up the hours for all of the employees. This will give you the total direct labor used.