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13 May, 13:10

LO 5.2What is the cost of direct labor if the conversion costs are $330,000 and manufacturing overhead is $275,000?

$55,000

$275,000

$330,000

$605,000

+1
Answers (1)
  1. 13 May, 15:41
    0
    cost of direct labor = $55,000

    so correct option is A. $55,000

    Explanation:

    given data

    conversion costs = $330,000

    manufacturing overhead = $275,000

    to find out

    cost of direct labor

    solution

    we get here cost of direct labor that is express as

    cost of direct labor = Conversion costs - manufacturing overhead ... 1

    put here value we will get here

    cost of direct labor = $330,000 - $275,000

    cost of direct labor = $55,000

    so correct option is A. $55,000
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