A company's prime costs total $4,800,000 and its conversion costs total $8,800,000. if direct materials are $1,900,000 and facto

Question

vichka [17]

3 years ago

8

A company's prime costs total $4,800,000 and its conversion costs total $8,800,000. if direct materials are $1,900,000 and facto

ry overhead is $5,900,000, then direct labor is:

Business

1 answer:

garri49 [273] · Answer 1 · 2022-01-31T20:25:15+03:00

Prime cost=direct material+direct labor
4800000=1900000+direct labor
Solve for direct labor
Direct labor=4800000-1900000
Direct labor=2900000. ..answer

If you try with the formula of the conversation cost to solve for direct labor, you will get the same answer

The formula of the conversation cost is
CC=direct labor+factory overhead

Hope it helps!