Common use of Direct Labor Clause in Contracts

Direct Labor. The cost of employees engaged in production activities that are directly identifiable with product costs. Excludes supervision, which is included in indirect labor, and production support activities such as inspection, plant and equipment maintenance labor, and material handling personnel. Direct Labor cost includes: • Base pay, overtime, vacation and holidays, illness, personal time with pay, and shift differential. • Cost of employee fringe benefits such as health and life insurance, payroll taxes, welfare, pension, profit sharing and bonuses.

Direct Labor. The cost Cost of employees engaged in production activities that are directly identifiable with product Product costs. Excludes supervision, supervision (which is included in indirect labor, ) and production support activities such as inspection, plant and equipment maintenance labor, and material handling personnel. Direct Labor cost includes: • - Base pay, overtime, vacation and holidays, illness, personal time with pay, and shift differential. • - Cost of employee fringe benefits such as health and life insurance, insurance payroll taxes, welfare, pension, pension and profit sharing and bonusessharing.

Direct Labor. The cost of employees engaged in production activities that which are directly identifiable with product costs. Excludes supervision, which is included in indirect labor, and production support activities such as inspection, plant and equipment maintenance labor, and material handling personnel. Direct Labor cost includes: • - Base pay, overtime, vacation and holidays, illness, personal time with pay, pay and shift differential. • - Cost of employee fringe benefits such as health and life insurance, payroll taxes, welfare, pension, pension and profit sharing and bonusessharing.