Question

Gulick Company developed the following data for the current year :Beginning work in process inventory $240,000 Direct materials used 144,000 Actual overhead 288,000 Overhead applied 216,000 Cost of goods manufactured 264,000 Total manufacturing costs 720,000 Gulick Company's direct labor cost for the year is

Answer 1

$360,000= direct labor

Step-by-step explanation:

Giving the following information:

Direct materials used 144,000

Overhead applied 216,000

Total manufacturing costs 720,000

We know that the total manufacturing costs are calculated as follow:

Total manufacturing costs= direct material used + direct labor + allocated overhead

720,000= 144,000 + direct labor + 216,000

360,000= direct labor