Final answer:
The standard cost of direct labor per unit is calculated by multiplying the standard quantity of direct labor by the standard price of direct labor.
Therefore, the correct answer is: option d). multiplying the standard quantity of direct labor by the standard price of direct labor.
Step-by-step explanation:
The direct labor standard time is based on the actual amount of time it takes for one employee to complete one job.
You track the actual time by having your employees keep a log of when they start and stop their job activities. The time spent on breaks, lunch or personal time is deducted from the work day.
The standard cost of direct labor per unit is calculated by multiplying the standard quantity of direct labor by the standard price of direct labor.
This calculation gives you the expected cost of labor for each unit produced. It helps businesses assess their labor costs and compare them to the actual costs incurred.