In September direct labor was 40% of conversion cost.If the manufacturing overhead for the month was $66,000 and the direct materials cost was $20,000,the direct labor cost was:
A)$13,333
B)$44,000
C)$99,000
D)$30,000

Question

Quizplus · Accepted Answer

Direct labor = 0.40 F1F1F1S1F1F1F10 Conversion cost
Manufacturing overhead = $66,000
Conversion cost = Direct labor + Manufacturing overhead
Conversion cost = Direct labor + $66,000
Conversion cost = 0.40 F1F1F1S1F1F1F10 Conversion cost + $66,000
0.60 F1F1F1S1F1F1F10 Conversion cost = $66,000
Conversion cost = $66,000 F1F1F1S1F1F1F10 0.60
Conversion cost = $110,000
Direct labor = 0.40 F1F1F1S1F1F1F10 Conversion cost = 0.40 F1F1F1S1F1F1F10 $110,000 = $44,000

In September Direct Labor Was 40% of Conversion Cost