Question

How is unit labor cost computed? a. By dividing the total level of output by the total cost of workers b. By dividing the total cost of workers by the total level of output c. By dividing the average cost of workers by their average levels of output d. By dividing the average level of output by the average cost of workers

Answer 1

The correct answer is letter "C": By dividing the average cost of workers by their average levels of output.

Step-by-step explanation:

The Unit of Labor cost measures how much it costs to compensate and employee per unit manufactured. It is calculated by dividing the average cost of employees with an average level of production. The result is expressed as a percentage of the labor compensation per hour in regards to the units produced without the same time.