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Factory overhead costs for a given period were 1.5 times as much as the direct material...

Factory overhead costs for a given period were 1.5 times as much as the direct material costs. Prime costs totaled $15,700. Conversion costs totaled $22,880. What are the direct labor costs for the period?

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Answer #1
Prime cost = direct materials + direct labor
conversion cost = direct labor + factory overhead
let direct material cost be x
so factory overhead = 1.5x
conversion cost - prime cost  
(Direct labor + factory overhead )-(direct materials+direct labor)=22880-15700
factory overhead - - direct materials = 7180
1.5x -x            = 7180
x                      = 7180/.5
14360
when materials is $14,360
so direct labor =15700-14360
1340
so factory overhead =22880-1340
21540
direct labor costs =$1,340 answer
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