Nestl S.A. uses process costing for its food manufacturing process. In February 2030, the company incurs costs of $150 million, including labor costs of $40

Nestlé S.A. uses process costing for its food manufacturing process. In February 2030, the company incurs costs of $150 million, including labor costs of $40 million. Of the labor costs, $30 million is classified as direct labor.

Required:

• Calculate the indirect labor costs for Nestlé S.A.
• Determine the direct labor cost per unit produced.
• Allocate total labor costs to the production process.
• Analyze the distribution of labor costs across production departments.
• Discuss the role of labor classification in process costing.