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3 April, 01:59

Major Industries manufactures covers for iPads. One of its most popular products, Hercules, has the following costs to produce 1,000 units: $24,000 direct materials, $4,800 advertising costs, $2,400 plant manager salary, and $1,600 salaries for factory maintenance. If the cost to produce one Hercules cover is $36.80, how much is Major's direct labor for this product? A :

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  1. 3 April, 03:52
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    Direct labor is $4,000

    Explanation:

    The direct labor will be computed as follows:

    Direct materials : $24,000

    Advertising costs : $4,800

    Plant manager salary : $2,400

    Salaries for factory maintenance : $1,600

    $32,800

    Overall cost for producing 1000 units

    = $36.80 X 1000 = $36,800

    Direct labor for the product

    $36,800 - $32,800 = $4,000
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