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2 October, 10:04

g 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::

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  1. 2 October, 13:35
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    Direct labor cost was:: $ 14,400

    Explanation:

    Total Manufacturing Costs=Direct Materials+Conversion Costs

    Total Manufacturing Costs $ 54,000

    Less Direct Materials $ 30,000

    Conversion Costs $ 24,000

    Conversion Costs = Direct labor + Factory Overhead

    Direct labor was 60% of conversion cost

    Direct Labor = 60% Of $ 24,000 = (60/100) * 24,000 = $ 14,400

    Factory Overhead = $ 24,000 - $ 14,400 = $ 9,600

    Factory Over head = 40 % of Conversion Costs = 40 % 0f 24,000 = $ 9,600
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