The following information is available for the first month of operations for Brandt, Inc.: ?? $$\begin{array} { l r }
\text { Sales } & \$ 570,000 \
\text { Gross profit } & 210,000 \
\text { Indirect labor } & 20,000 \
\text { Indirect materials } & 5,000 \
\text { Other factory overhead } & 37,000 \
\text { Direct materials cost } & 390,000 \
\text { Total manufacturing costs } & 658,000
\end{array}$$ ?
Calculate direct labor cost for Brandt, Inc.
A) $226,000
B) $206,000
C) $231,000
D) $218,000

Question

The following information is available for the first month of operations for Brandt, Inc.: ?? $$\begin{array} { l r } 
\text { Sales } & \$ 570,000 \
\text { Gross profit } & 210,000 \
\text { Indirect labor } & 20,000 \
\text { Indirect materials } & 5,000 \
\text { Other factory overhead } & 37,000 \
\text { Direct materials cost } & 390,000 \
\text { Total manufacturing costs } & 658,000
\end{array}$$ ?
Calculate direct labor cost for Brandt, Inc.
A) $226,000
B) $206,000
C) $231,000
D) $218,000

Quizplus · Accepted Answer

Total manufacturing costs are the sum of direct materials, direct labor, and manufacturing overhead. Given that total manufacturing costs are $658,000, direct materials cost $390,000, and manufacturing overhead (indirect labor $20,000 + indirect materials $5,000 + other factory overhead $37,000 = $62,000), we can calculate direct labor cost by subtracting the sum of direct materials cost and manufacturing overhead from the total manufacturing costs: $658,000 - $390,000 - $62,000 = $206,000.

The Following Information Is Available for the First Month of Operations