Factory Overhead Costs for a Given Period Were 1

Multiple Choice

Factory overhead costs for a given period were 1.5 times as much as the direct material costs.Prime costs totaled $15,500.Conversion costs totaled $22,725.What are the direct labor costs for the period?

A) $1,200.
B) $1,050.
C) $1,075.
D) $1,155.
$22,725 = Direct Labor Costs + Factory Overhead Costs
Direct Labor Costs = $15,500 - Direct Materials Costs
Factory Overhead Costs = 1.5(Direct Materials Costs)
Solve for Direct Materials Costs via substitution:
$22,725 = ($15,500 - Direct Materials Costs) + 1.5(Direct Materials Costs)
Direct Materials Costs = $14,450
Direct Labor Costs = $15,500 - $14,450 = $1,050