Question

Samson Company reported total manufacturing costs of $320,000, manufacturing overhead totaling $52,000, and direct materials used totaling $64,000. How much is direct labor cost?

Answer 1

Answer:

Direct labor cost is $204,000

Explanation:

Total manufacturing costs $320,000

Manufacturing overhead $52,000

Direct materials used $64,000

How much is direct labor cost ?

Total Manufacturing is all the cost used to manufacture a product by the company. It included all direct and indirect expenses incurred during the period for manufacturing a product.

Use following formula to calculate the Direct labor cost:

Manufacturing cost =  Direct Expenses + Manufacturing Overhead

Manufacturing cost =  ( Direct Material Expense + Direct labor Expense) + Manufacturing Overhead

$320,000 =  ( $64,000 + Direct labor Expense) + $52,000

$320,000 =  $64,000 + Direct labor Expense + $52,000

$320,000 =  $116,000 + Direct labor Expense

Direct labor Expense = $320,000 - $116,000

Direct labor Expense = $204,000