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Wilturner Company incurs $80,000 of labor related directly to the product in the Assembly Department, and $29,000 of labor related to the Assembly Department as a whole, and $16,000 of labor for services that help production in both the Assembly and Finishing departments. The amount of direct labor and factory overhead respectively are:________

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Answer:

  • Direct labor = $80,000
  • Factory Overhead = $29,000

Explanation:

Direct labor is the cost of labor that was involved in the actual production process.

Factory overhead is the labor that was involved in the production but not directly involved.

Direct labor here is therefore the $80,000 that was directly related to the product.

Factory overhead is the $29,000 that was related to the Assembly department as a whole.

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