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

question 83

Multiple Choice

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

• A) $15,000.
• B) $60,000.
• C) $33,333.
• D) $20,000.CC = DL + OHx = 60,000 Therefore DL 60,000 * .25 = $15,000

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