Direct Labor is considered a:

Direct labor is classified as a variable cost because it fluctuates directly with the level of production. As production increases, the number of labor hours typically increases as well, leading to a higher total cost for labor. Conversely, if production decreases, fewer labor hours are required, resulting in lower direct labor costs. This direct correlation between the quantity of output and labor costs characterizes direct labor as a variable cost.

In contrast, fixed costs do not change with production levels, mixed costs have both fixed and variable components, and period costs are associated with time periods rather than production activities. Therefore, the classification of direct labor as a variable cost aligns with its behavior in relation to production changes.