Question

A company's prime costs total $5,200,000 and its conversion costs total $9,200,000. if direct materials are $2,100,000 and factory overhead is $6,100,000, then direct labor is:

Answer 1

Direct labor= $3,100,000

Step-by-step explanation:

Giving the following information:

Prime costs= $5,200,000

Conversion costs= $9,200,000.

Direct materials= $2,100,000

Factory overhead= $6,100,000

To calculate the direct labor, we need to use the conversion and primer costs formula.

Prime costs= direct material + direct labor

5,200,000= 2,100,000 + direct labor

$3,100,000= DL

To prove it:

Conversion costs= direct labor + Factory overhead

9,200,000= DL + 6,100,000

3,100,000= DL