The following information is available for the first month of operations for Brandt, Inc.: $\begin{array}{ll}
\$ 570,000 & \text { Sales } \
210,000 & \text { Grossprofit } \
20,000 & \text { Indirect labor } \
5,000 & \text { Indirect materials } \
37,000 & \text { Other factory overhead } \
390,000 & \text { Direct materials cost } \
658,000 & \text { Total manufacturing costs }
\end{array}$
Calculate direct labor cost for Brandt, Inc.

Question

The following information is available for the first month of operations for Brandt, Inc.: $\begin{array}{ll}
\$ 570,000 & \text { Sales } \
210,000 & \text { Grossprofit } \
20,000 & \text { Indirect labor } \
5,000 & \text { Indirect materials } \
37,000 & \text { Other factory overhead } \
390,000 & \text { Direct materials cost } \
658,000 & \text { Total manufacturing costs }
\end{array}$
 Calculate direct labor cost for Brandt, Inc.

Quizplus · Accepted Answer

The total manufacturing costs include direct materials, direct labor, and factory overhead. Given total manufacturing costs of $658,000, direct materials cost of $390,000, and total factory overhead (indirect labor $20,000 + indirect materials $5,000 + other factory overhead $37,000 = $62,000), the direct labor cost is calculated as $658,000 - $390,000 - $62,000 = $206,000.

The Following Information Is Available for the First Month of Operations