Factory Overhead Costs for a Given Period Were 1

question 19

Multiple Choice

Factory overhead costs for a given period were 1.5 times as much as the direct material costs.Prime costs totaled $15,500.Conversion costs totaled $22,725.What are the direct labor costs for the period?

• A)$1,200.
• B)$1,050.
• C)$1,075.
• D)$1,155.
• $22,725 = Direct Labor Costs + Factory Overhead Costs
• Direct Labor Costs = $15,500 - Direct Materials Costs
• Factory Overhead Costs = 1.5(Direct Materials Costs)
• Solve for Direct Materials Costs via substitution:
• $22,725 = ($15,500 - Direct Materials Costs)+ 1.5(Direct Materials Costs)
• Direct Materials Costs = $14,450
• Direct Labor Costs = $15,500 - $14,450 = $1,050

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Definitions:

Income

The amount of money received on a regular basis from work, property, business, or as financial support.

Positively Correlated

A relationship between two variables in which they both move in the same direction, meaning that as one variable increases, the other also increases.

Manipulates Factor

In experimental design, the variable that is changed or controlled by the researcher to observe its effect on the dependent variable.

Research Design

The framework or plan for a study used as a guide in collecting and analyzing data.