Williams Company's Direct Labour Cost Is 25% of Its Conversion

question 33

Multiple Choice

Williams Company's direct labour cost is 25% of its conversion cost. If the manufacturing overhead cost for the last period was $45,000 and the direct materials cost was $25,000, the direct labour cost was:

• A)$33,333.
• B)$15,000.
• C)$20,000.
• D)$60,000.

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Definitions:

Inhibitor Valve

A valve that controls fluid flow in a system, specifically designed to prevent undesired operation or flow in certain conditions.

Input Retarder

A device used in heavy-duty vehicle transmissions to reduce speed through resistance, typically using the engine's powertrain.

Downshifting

The process of shifting a vehicle's transmission down to a lower gear to increase power or decelerate.