Question

Waterway Company developed the following data for the current year: Beginning work in process inventory $68700 Direct materials used 103900 Actual overhead 88800 Overhead applied 91600 Cost of goods manufactured 450600 Total manufacturing costs 427400 How much is Waterway Company's direct labour cost for the year?

$255100 A

$300600 B

$231900 C

$172600 D

Answer 1

Direct materials used = $103,900

Overhead applied = $91,600

Total manufacturing costs = $427,400

Cost of goods manufactured = $450,600

Total manufacturing costs = Direct material used + Direct labour + Overhead applied

427,400 = 103,900+Direct labour + 91,600

Direct labour = $231,900

Waterway Company's direct labour cost for the year $231,900

Correct option is C.

Kindly give a positive rating if you are satisfied with this solution and please ask if you have any query.

Thanks