A company's prime costs total $5,200,000 and its conversion costs total $9,200,000. if direct materials are $2,100,000 and factory overhead is $6,100,000, then direct labor is:

Question

Alyson Blackburn

Business

12 August, 03:59

A company's prime costs total $5,200,000 and its conversion costs total $9,200,000. if direct materials are $2,100,000 and factory overhead is $6,100,000, then direct labor is:

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Answers (1)

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Anabel Lyons · Answer 1

Direct labor = $3,100,000

Explanation:

Giving the following information:

Prime costs = $5,200,000

Conversion costs = $9,200,000.

Direct materials = $2,100,000

Factory overhead = $6,100,000

To calculate the direct labor, we need to use the conversion and primer costs formula.

Prime costs = direct material + direct labor

5,200,000 = 2,100,000 + direct labor

$3,100,000 = DL

To prove it:

Conversion costs = direct labor + Factory overhead

9,200,000 = DL + 6,100,000

3,100,000 = DL