ABC Construction Co.

Scenario: Track and Analyze Labor Costs

Data:

• Direct Labor Hours: 8,000 hours
• Average Labor Rate: $20 per hour
• Indirect Labor Costs: $15,000

Requirements:

1. Calculate the total direct labor costs incurred.
2. Determine the labor cost per unit of output (if 2,000 units produced).
3. Analyze the efficiency of labor utilization based on direct labor hours.
4. Discuss the impact of labor costs on ABC Construction Co.'s project profitability.