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27 December, 04:19

In September direct labor was 40% of conversion cost. If the manufacturing overhead for the month was $66,000 and the direct materials cost was $20,000, the direct labor cost was: A. $44,000B. $13,333C. $30,000D. $99,000

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  1. 27 December, 04:29
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    The correct answer is A.

    Explanation:

    Giving the following information:

    In September direct labor was 40% of conversion cost. The manufacturing overhead for the month was $66,000.

    We know that:

    conversion cost = direct labor + factory overhead

    Using the rule of three:

    If = 66,000 = 60%

    X = 100%

    X = (100*66) / 40 = $110,000

    Direct labor = 110,000*0.4 = $44,000
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