Factory Overhead Costs for This Period Were 3 Times as Much

Multiple Choice

Factory overhead costs for this period were 3 times as much as the direct material costs.Prime costs totaled $2,000.Conversion costs totaled $3,280.What are the direct labor costs for the period?

A) $1,220.
B) $1,360.
C) $1,410.
D) $1,540.
$3,280 = Direct Labor Costs + Factory Overhead Costs
Direct Labor Costs = $2,000 - Direct Materials Costs
Factory Overhead Costs = 3 x (Direct Materials Costs)
Solve for Direct Materials Costs via substitution:
$3,280 = ($2,000 - Direct Materials Costs) + 3(Direct Materials Costs)
Direct Materials Costs = $640
Direct Labor Costs = $2,000 - $640 = $1,360