Question

Lakeland Inc. manufactured 2,500 units during the month of March. They incurred direct materials cost of $58,000 and overhead costs of $40,000. If their per-unit prime cost was $32.00 per unit, how much direct labor cost did they incur during March

Answer 1

$22,000

Explanation:

To find the direct labor cost incurred by Lakeland Inc. during March, we need to calculate the total prime cost, which includes both direct materials cost and direct labor cost.

The prime cost per unit is given as $32.00 per unit.

Total prime cost = Prime cost per unit * Number of units

Total prime cost = $32.00 * 2,500 units

Total prime cost = $80,000

Now, we can subtract the direct materials cost from the total prime cost to find the direct labor cost:

Direct labor cost = Total prime cost - Direct materials cost

Direct labor cost = $80,000 - $58,000

Direct labor cost = $22,000

Therefore, Lakeland Inc. incurred a direct labor cost of $22,000 during the month of March.