Question

Wome Companyincs 590.000 brand decorate Assembly and get the mount of director and actory Department 30.000 M Choice

Answer 1

The correct answer is - Direct labor costs are $129,000 and Factory Overheads are $26,000.

Supporting explanations:

Labor costs that were incurred directly to the production are treated as Direct Labor. In this problem, the labor costs of $90,000 and $39,000 were incurred directly to the production in the Assembly department, hence, they both treated as direct labor costs, thus, the total direct labor costs are $129,000 ($90,000 + $39,000).

Labor costs that were incurred in support to the production are treated as factory overheads, in this problem, the costs of $26,000 of labor incurred for supporting in production are treated as factory overheads.

Therefore, the direct labor costs are $129,000 and factory overheads are $26,000.