Question

Crane Company reported total manufacturing costs of $220000, manufacturing overhead totaling $42000, and direct materials totaling $54000. How much is direct labor cost?

Answer 1

$124000

Step-by-step explanation:

Given: Manufacturing cost= $220000

Manufacturing overhead= $42000.

Direct material= $54000.

Now, finding the direct labor cost.

Remember: Direct labor cost=
`Manufacturing\ cost- (overhead\ cost+ direct\ material)`

⇒ Direct labor cost=
`\$ 220000-(42000+54000)`

⇒ Direct labor cost=
`\$220000- \$ 96000`

⇒ Direct labor cost=
`\$ 124000`

Hence, direct labor cost is $124000