Zirk, Inc.incurred cost of goods manufactured totalling $700,000, manufacturing overhead of $320,000, and direct materials totalling $40,000.How much is the amount of direct labour?
A)Cannot be determined from the information provided.
B)$340,000
C)$660,000
D)$700,000

Question

Quizplus · Accepted Answer

To calculate the amount of direct labor, we need to use the formula:
Direct Labor = Cost of Goods Manufactured - Manufacturing Overhead - Direct Materials
Direct Labor = $700,000 - $320,000 - $40,000
Direct Labor = $340,000

Zirk, Incincurred Cost of Goods Manufactured Totalling $700,000, Manufacturing Overhead of of $320,000