In a factory, there are two types of labor -- direct and indirect. Direct labor are those workers on the production line whose efforts directly produce what the factory manufactures.

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 ...

How to Calculate Direct Labor Rates in Accounting Calculating the labor costs directly associated with the production of a product or delivery of a service.