A company's prime costs total $4,800,000 and its conversion costs total $8,800,000. if direct materials are $1,900,000 and factory overhead is $5,900,000, then direct labor is:
Prime cost=direct material+direct labor 4800000=1900000+direct labor Solve for direct labor Direct labor=4800000-1900000 Direct labor=2900000. ..answer
If you try with the formula of the conversation cost to solve for direct labor, you will get the same answer
The formula of the conversation cost is CC=direct labor+factory overhead