Question

Penner Company reported total manufacturing costs of $450,000, manufacturing overhead totaling $78,000, and direct materials totaling $96,000. How much is direct labor cost?

Answer 1

$ 276,000

Step-by-step explanation:

Given data:

Total manufacturing cost = $ 450,000

Total manufacturing overhead cost = $ 78,000

Total direct material cost = $ 96,000

Now,

The total manufacturing cost includes = The Total manufacturing overhead cost + Total direct material cost + The total direct labor cost

thus, we have

$ 450,000 = $ 78,000 + $ 96,000 + The total direct labor cost

or

The total direct labor cost = $ 450,000 - ( $ 78,000 + $ 96,000 )

or

The total direct labor cost = $ 276,000