In May direct labor was 40% of conversion cost. If the manufacturing overhead for the month was $120,600 and the direct materials cost was $29,200, the direct labor cost was:

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Business

Carlen

30 August, 07:27

In May direct labor was 40% of conversion cost. If the manufacturing overhead for the month was $120,600 and the direct materials cost was $29,200, the direct labor cost was:

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Moses Sims · Answer 1

direct labor = $80,400

Explanation:

Giving the following information:

In May direct labor was 40% of conversion cost. The manufacturing overhead for the month was $120,600.

The conversion costs are the sum of direct labor and manufacturing overhead.

Conversion costs = 120,600/0.6 = 201,000

direct labor = 210,000*0.4 = 80,400