Question

In May direct labor was 40% of conversion cost. If the manufacturing overhead for the month was $120,600 and the direct materials cost was $29,200, the direct labor cost was:

Answer 1

Answer:

direct labor= $80,400

Explanation:

Giving the following information:

In May direct labor was 40% of conversion cost. The manufacturing overhead for the month was $120,600.

The conversion costs are the sum of direct labor and manufacturing overhead.

Conversion costs= 120,600/0.6= 201,000

direct labor= 210,000*0.4= 80,400