In August Direct Labor Was 60% of Conversion Cost

question 104

Multiple Choice

In August direct labor was 60% of conversion cost. If the manufacturing overhead for the month was $54,000 and the direct materials cost was $34,000, the direct labor cost was:

• A) $36,000
• B) $22,667
• C) $51,000
• D) $81,000

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Definitions:

Blue Cross

A health insurance company known for providing healthcare plans and insurance services to individuals in various regions.

Hospital Expenses

Costs associated with receiving medical care in a hospital, which may include fees for room stays, medical procedures, medications, and the use of hospital equipment.

Gatekeeper

One who regulates access to someone or something; in insurance, a primary care physician who coordinates the patient’s referral to specialists and hospital admissions.

Primary Care Physician

A Primary Care Physician (PCP) is a healthcare provider who offers general medical treatment and who is typically the first point of consultation for patients.