The standard hours per unit includes both direct and indirect labor hours.True false question.TrueFalse

The statement "The standard hours per unit includes both direct and indirect labor hours" is False.

Explanation:

Standard hours per unit typically refer to the amount of direct labor time required to produce one unit of a product. This measure focuses specifically on direct labor—the personnel who directly contribute to the manufacturing of the product.

Indirect labor, on the other hand, includes time spent by workers who do not directly produce goods but support the production process, such as supervisors, maintenance personnel, and staff involved in quality control. Therefore, when calculating standard hours per unit, only direct labor hours are considered, while indirect labor hours are accounted for separately in overhead costs.

In summary, standard hours per unit are aimed at assessing the efficiency of direct labor and do not include the indirect labor hours, making this statement untrue.