Wilturner Company incurs $97,000 of labor related directly to the product in the Assembly Department,and $10,000 of labor for services that help production in both the Assembly and Finishing departments.The amount of direct labor and factory overhead respectively are:
A)$74,000 and $33,000.
B)$97,000 and $10,000.
C)$84,000 and $23,000.
D)$107,000 and $0.
E)$74,000 and $10,000.

Question

Quizplus · Accepted Answer

Direct labor directly related to the product is $97,000. The $10,000 of labor for services that help production in both departments is considered factory overhead, not direct labor.

Wilturner Company Incurs $97,000 of Labor Related Directly to the Product