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The Direct Labor Cost of Manufacturing a Product Is $123

Question 119

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The direct labor cost of manufacturing a product is $123.95, direct material cost is $56.20, and overhead is $57.75.
a) What is the percent content of each element of cost in the product?
b) What is the overhead percent rate based on direct labour?

Correct Answer:

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a) Labor cost = $123.95 52.1%
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