Question

Wilturner Company incurs $85,000 of labor related directly to the product in the Assembly Department, and $34,000 of labor related to the Assembly Department as a whole, and $21,000 of labor for services that help production in both the Assembly and Finishing departments. The amount of direct labor and factory overhead respectively are:

Answer 1

Answer:

Direct labor= $85,000

Manufacturing overhead= $55,000

Explanation:

Giving the following information:

Wilturner Company incurs $85,000 of labor related directly to the product in the Assembly Department, and $34,000 of labor related to the Assembly Department as a whole, and $21,000 of labor for services that help production in both the Assembly and Finishing departments.

Manufacturing overhead is the number of production costs that can't be directly linked toa specific product. It includes indirect labor.

Direct labor= $85,000

Manufacturing overhead= 34,000 + 21,000= $55,000