Gulick Company developed the following data for the current year: $\begin{array}{lr}
\text { Beginning work in process inventory } & \$ 240,000 \
\text { Direct materials used } & 144,000 \
\text { Actual overhead } & 288,000 \
\text { Overhead applied } & 216,000 \
\text { Cost of goods manufactured } & 264,000 \
\text { Total manufacturing costs } & 720,000
\end{array}$ Gulick Company's direct labor cost for the year is
A) $72000.
B) $360000.
C) $216000.
D) $288000.

Question

Quizplus · Accepted Answer

Total manufacturing costs are the sum of direct materials, direct labor, and actual overhead. Given that total manufacturing costs are $720,000, direct materials used are $144,000, and actual overhead is $288,000, we can find direct labor cost by subtracting these from the total manufacturing costs: $720,000 - $144,000 - $288,000 = $288,000. However, there was a mistake in my calculation. The correct calculation should be: Direct labor = Total manufacturing costs - Direct materials used - Actual overhead = $720,000 - $144,000 - $288,000 = $288,000. Therefore, the correct answer is D) $288,000.

Gulick Company Developed the Following Data for the Current Year