Greer Company developed the following data for the current year: $\begin{array}{lr}
\text { Beginning work in process inventory } & \$ 136,000 \
\text { Direct materials used } & 208,000 \
\text { Actual overhead } & 176,000 \
\text { Overhead applied } & 184,000 \
\text { Cost of goods manufactured } & 900,000 \
\text { Total manufacturing costs } & 856,000
\end{array}$ How much is Greer Company's direct labor cost for the year?

Question

Quizplus · Accepted Answer

To find the direct labor cost, use the formula: Total Manufacturing Costs = Direct Materials + Direct Labor + Overhead Applied. Rearranging gives Direct Labor = Total Manufacturing Costs - Direct Materials - Overhead Applied. Substituting the values: Direct Labor = $856,000 - $208,000 - $184,000 = $464,000.

Greer Company Developed the Following Data for the Current Year