Question

Sunland Company developed the following data for the current year: Beginning work in process inventory $...

Sunland Company developed the following data for the current year:

Beginning work in process inventory $ 156000
Direct materials used 208000
Actual overhead 176000
Overhead applied 184000
Cost of goods manufactured 910000
Total manufacturing costs 866000


How much is Sunland Company's direct labor cost for the year?

$518000

$318000

$474000

$630000

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Answer #1

Answer:

Total manufacturing cost = Direct material + Direct labor + Overhead applied

so Direct labor = Total manufacturing cost - Direct material and overhead applied

Total manufacturing cost $    866000
Less: Direct material $ (208000)
Less: Overhead applied $ (184000)
Total direct labor cost   $    474000
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