Question

g In May direct labor was 60% of conversion cost. If the manufacturing overhead for the month was $54,000 and the direct materials cost was $30,000, the direct labor cost was::

Answer 1

Answer:

Direct labor cost was:: $ 14,400

Explanation:

Total Manufacturing Costs=Direct Materials+Conversion Costs

Total Manufacturing Costs $ 54,000

Less Direct Materials  $ 30,000

Conversion Costs $ 24,000

Conversion Costs= Direct labor + Factory Overhead

Direct labor was 60% of conversion cost

Direct Labor = 60% Of $ 24,000=  (60/100)* 24,000= $ 14,400

Factory Overhead = $ 24,000 - $ 14,400= $ 9,600

Factory Over head =  40 % of Conversion Costs = 40 % 0f 24,000= $ 9,600