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

Question

Zachariah Herrera

Business

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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Answers (1)

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Big Bird · Answer 1

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