Question

A company's prime costs total $3,800,000 and its conversion costs total $7,800,000. If direct materials are $1,400,000 and factory overhead is $5,400,000, then direct labor is:

Answer 1

Explanation:

Conversion costs = Direct labor + Factory overhead

7,800,000 = Direct labor + 5,400,000

Direct labor = $2,400,000

First option is the correct option.

I know this much only.