LO 5.2What is the cost of direct labor if the conversion costs are $330,000 and manufacturing overhead is $275,000?

$55,000

$275,000

$330,000

$605,000

cost of direct labor = $55,000

so correct option is A. $55,000

Explanation:

given data

conversion costs = $330,000

manufacturing overhead = $275,000

to find out

cost of direct labor

solution

we get here cost of direct labor that is express as

cost of direct labor = Conversion costs - manufacturing overhead ... 1

put here value we will get here

cost of direct labor = $330,000 - $275,000

cost of direct labor = $55,000

so correct option is A. $55,000