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27 December, 14:28

Greer Company developed the following data for the current year:

Beginning work in process inventory: $102,000

Direct materials used: 156,000

Actual overhead: 132,000

Overhead applied: 138,000

Cost of goods manufactured: 675,000

Total manufacturing costs: 642,000

How much is Greer Company's direct labor cost for the year?

a. $381,000

b. $450,000

c. $348,000

d. $246,000

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Answers (1)
  1. 27 December, 18:12
    0
    option (C) is correct.

    Explanation:

    Given that,

    Beginning work in process inventory: $102,000

    Direct materials used: 156,000

    Actual overhead: 132,000

    Overhead applied: 138,000

    Cost of goods manufactured: 675,000

    Total manufacturing costs: 642,000

    Company's direct labor cost for the year:

    = Total manufacturing costs - Overhead cost - Direct materials cost

    = Total manufacturing costs - Overhead applied - Direct materials used

    = $642,000 - $138,000 - $156,000

    = $348,000
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