Question

1. The following costs were incurred in September:

Answer 1

Answer:

1) conversion costs = direct labor + manufacturing costs = $29,700 + $21,200 = $50,900

2) prime costs = direct labor + direct materials = $29,700 + $46,600 = $69,900

3) direct labor = 45% of conversion costs

conversion costs = direct labor + manufacturing overhead

manufacturing overhead = 55% of conversion costs

conversion costs = $80,300 / 55% = $146,000

direct labor = $146,000 - $80,300 = $65,700