Question

Reimer Company reported total manufacturing costs of $425,000, manufacturing overhead totaling $80,000, and direct materials totaling $100,000. How much is direct labor cost?

Answer 1

Answer:

$245,000

Explanation:

Total manufacturing costs are comprised by three components: manufacturing overhead, direct materials cost and direct labor cost.

If we are given the amount for each cost mentioned above except the labor cost, direct labor cost can be simply obtained by:

$Total\ cost = Overhead+Materials+Labor\\Labor = \ 425,000-\ 80,000-\ 100,000\\Labor = \ 245,000$

The direct labor cost is $245,000.