Synergy Inc.manufactured 6,000 units during the month of March.They incurred direct materials cost of $120,000 and manufacturing overhead costs of $48,000.If their per-unit prime cost was $31.20 per unit, how much direct labor cost did it incur during March?
A) $20,000
B) $35,000
C) $90,000
D) $67,200

Question

Quizplus · Accepted Answer

SUPPORTING CALCULATIONS:
Prime Cost = Units manufactured × Per-unit prime cost = 6,000 units × $31.20 = $187,200
Prime Cost = Direct Materials + Direct Labor
$187,200 = $120,000 + Direct labor
Direct labor = $187,200 - $120,000 = $67,200