Question

Direct materials and direct labor of a company total $7300000. If manufacturing overhead is $3650000, what is direct labor cost?

a.Cannot be determined from the information provided.
b. $3650000
c. $0
d. $7300000

Answer 1

Direct labour cost cannot be determined from the information provided.

The correct answer is A

Step-by-step explanation:

In order to determine the direct labour cost, overhead application rate, budgeted direct labour hours and direct labour hourly rate should be provided. The direct labour cost cannot be determined from the incomplete information provided.