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horsena [70]
4 years ago
11

In May direct labor was 35% of conversion cost. If the manufacturing overhead for the month was $116,350 and the direct material

s cost was $20,200, the direct labor cost was:
Business
1 answer:
yan [13]4 years ago
5 0

Answer:

Direct labor= $62,650

Explanation:

Giving the following information:

In May direct labor was 35% of conversion cost.

The manufacturing overhead for the month was $116,350.

<u>The conversion costs are the sum of the direct labor and the manufacturing overhead:</u>

<u></u>

Overhead= 65%= 116,350

Direct labor= 35%= ?

<u>First, we need to determine the total amount of conversion costs:</u>

Conversion costs= 116,350/0.65= 179,000

N<u>ow, the direct labor cost:</u>

Direct labor= 179,000*0.35

Direct labor= $62,650

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