Fireox Inc.selected cost data for 2015 are shown below: Assuming manufacturing overhead costs of $27,850,what is the amount of direct labor incurred by Fireox Inc.in 2015?
A)$63,120
B)$190,430
C)$57,580
D)$79,690

Question

Fireox Inc.selected cost data for 2015 are shown below:  Assuming manufacturing overhead costs of $27,850,what is the amount of direct labor incurred by Fireox Inc.in 2015?
A)$63,120 
B)$190,430 
C)$57,580 
D)$79,690

Quizplus · Accepted Answer

Direct labor cost = Total manufacturing cost - Direct materials cost - Manufacturing overhead cost 
Direct materials cost = $79,520 
Total manufacturing cost = Direct materials cost + Direct labor cost + Manufacturing overhead cost 
= $79,520 + Direct labor cost + $27,850 
= $107,370 + Direct labor cost

Therefore, Direct labor cost = Total manufacturing cost - Direct materials cost - Manufacturing overhead cost 
= $107,370 - $79,520 - $27,850 
= $57,580

Hence, the correct answer is C.