Factory Overhead Costs for This Period Were 3 Times as Much

question 10

Multiple Choice

Factory overhead costs for this period were 3 times as much as the direct material costs.Prime costs totaled $2,000.Conversion costs totaled $3,280.What are the direct labor costs for the period?

• A)$1,220.
• B)$1,360.
• C)$1,410.
• D)$1,540.
• $3,280 = Direct Labor Costs + Factory Overhead Costs
• Direct Labor Costs = $2,000 - Direct Materials Costs
• Factory Overhead Costs = 3 x (Direct Materials Costs)
• Solve for Direct Materials Costs via substitution:
• $3,280 = ($2,000 - Direct Materials Costs)+ 3(Direct Materials Costs)
• Direct Materials Costs = $640
• Direct Labor Costs = $2,000 - $640 = $1,360

---

Definitions:

Hydrogen Ions

Positively charged ions (H+) that form when a hydrogen atom loses its electron, crucial in acid-base chemistry.

Muscle Cramps

Involuntary and sudden contractions of a muscle or muscles, often causing pain and discomfort.

Lactate Ion

A negatively charged ion (anion) formed from lactic acid, playing a significant role in metabolic processes, especially in muscle cells during strenuous exercise.

Pyruvate Ion

A negatively charged ion derived from pyruvic acid, playing a crucial role in metabolic processes as an energy source.