Ask Question
11 July, 12:11

In May direct labor was 60% of conversion cost. If the manufacturing overhead for the month was $54,000 and the direct materials cost was $30,000, the direct labor cost was: a. $20,000 b. $45,000 c. $81,000 d. $36,000

+2
Answers (1)
  1. 11 July, 12:16
    0
    The correct answer is C.

    Explanation:

    Giving the following information:

    In May direct labor was 60% of conversion cost. If the manufacturing overhead for the month was $54,000.

    We know that:

    Conversion cost = direct labor + manufacturing overhead

    If direct labor was 60% of conversion costs, overhead was 40%.

    Rule of 3:

    40%=54,000

    60% = x

    x = (0.60*54,000) / 0.40

    x = 81,000

    Direct labor = 81,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “In May direct labor was 60% of conversion cost. If the manufacturing overhead for the month was $54,000 and the direct materials cost was ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers