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In May direct labor was 35% of conversion cost. If the manufacturing overhead for the month was $102,050 and the direct materials cost was $23,800, the direct labor cost was:____________

Respuesta :

Answer:

direct labor cost is  = $54,950

Explanation:

step 1

calculate conversion cost

conversion cost = direct labor cost + manufacturing overhead cost

where direct labor cost is 35% conversion cost, therefore we have

conversion cost ( 1 - 0.35) = manufacturing cost

conversion cost [tex]= \frac{102,050}{1-0.35}[/tex]

conversion cost  = $157000

step 2

we know that

direct labor cost is 35% conversion cost

hence, direct labor cost is  = $54,950

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