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Crane Company reported total manufacturing costs of $220000, manufacturing overhead totaling $42000, and direct materials totaling $54000. How much is direct labor cost?

Respuesta :

Answer:

$124000

Explanation:

Given: Manufacturing cost= $220000

           Manufacturing overhead= $42000.

           Direct material= $54000.

Now, finding the direct labor cost.

Remember: Direct labor cost= [tex]Manufacturing\ cost- (overhead\ cost+ direct\ material)[/tex]

⇒ Direct labor cost= [tex]\$ 220000-(42000+54000)[/tex]

⇒ Direct labor cost= [tex]\$220000- \$ 96000[/tex]

⇒ Direct labor cost= [tex]\$ 124000[/tex]

Hence, direct labor cost is $124000