Effect of Raw Material Costs and Direct Labor Costs on Production Volume of PT. Sarana Central Bajatama Tbk.

Abstract

This research was conducted to determine the effect of raw material costs and direct labor costs on production volume. The research was carried out using a quantitative approach with the main research objects being data on raw material costs, labor costs and production volumePT. Sarana Central Bajatama Tbk in 2015-2019, the data collection process was carried out using secondary data through the annual report of PT. Sarana Central Bajatama Tbk and literature study using relevant journals. The data analysis was carried outthrough the classical assumption test and testregressionmultiple linear The final results of the study show that there is an influence between raw material costs on production volume with a significance level of 0.021 <0.05 and the results show that there is also an effect on labor costs on production volume with a significance level of 0.001 <0.005. The results of the F test show a significance level of 0.001 <0.05, so it can be concluded that between the two load variablesstimulatedependent variable, raw material costs and costspowerwork can have an effect on the amount of production volume, this relationship has a very strong explanation with the Adjusted R2 value reaching 0.1000 or 100%