137k views
1 vote
Factory overhead costs for a given period were 2 times as much as the direct material costs. Prime costs totaled $10,100.

Conversion costs totaled $14,150. What are the direct labor costs for the period?

User Medvekoma
by
8.5k points

1 Answer

2 votes

Answer: Let's assume that the direct material costs for the period are x. Then, from the information given in the problem:

Factory overhead costs for the period were 2 times as much as the direct material costs, so the factory overhead costs are 2x.

Prime costs, which is the sum of direct material costs and direct labor costs, totaled $10,100. Therefore, we can write the equation:

x + Direct labor costs = 10,100

Conversion costs, which is the sum of direct labor costs and factory overhead costs, totaled $14,150. Therefore, we can write the equation:

Direct labor costs + 2x = 14,150

Now, we can solve for the direct labor costs by using the two equations we have. First, we can substitute x + Direct labor costs = 10,100 into the second equation:

Direct labor costs + 2x = 14,150

Direct labor costs = 14,150 - 2x

x + Direct labor costs = 10,100

x + (14,150 - 2x) = 10,100

14,150 - x = 10,100

x = 4,050

So, the direct material costs for the period are $4,050. Now, we can substitute this value into the equation for direct labor costs:

Direct labor costs + 2x = 14,150

Direct labor costs + 2(4,050) = 14,150

Direct labor costs = 14,150 - 2(4,050)

Direct labor costs = $6,050

Therefore, the direct labor costs for the period are $6,050.

User Katenoox
by
7.9k points

No related questions found