The Toronto Symphony Hall offers two types of seats: Standard seats and VIP seats. The fixed costs sum up to $60,000. Below is further relevant information: Standard Seats Sales Mix in Units Selling Price Unit CM VIP Seats 85% $18 CM Ratio $7 38.9% The total manufacturing costs incurred for the year are $250,000. The overhead cost was 50% of the direct labor cost, and the direct materials cost was $30,000. What was the direct labor cost? a. $146,667 b. $135,000 c. $120,000 d. None of the above
The Toronto Symphony Hall offers two types of seats: Standard seats and VIP seats. The fixed costs sum up to $60,000. Below is further relevant information: Standard Seats Sales Mix in Units Selling Price Unit CM VIP Seats 85% $18 CM Ratio $7 38.9% The total manufacturing costs incurred for the year are $250,000. The overhead cost was 50% of the direct labor cost, and the direct materials cost was $30,000. What was the direct labor cost? a. $146,667 b. $135,000 c. $120,000 d. None of the above
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...
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What was the direct labor cost on these general accounting question?

Transcribed Image Text:The Toronto Symphony Hall offers two types of seats: Standard seats and VIP seats. The
fixed costs sum up to $60,000. Below is further relevant information:
Standard Seats
Sales Mix in Units
Selling Price
Unit CM
VIP Seats
85%
$18
CM Ratio
$7
38.9%
The total manufacturing costs incurred for the year are $250,000. The overhead cost was 50%
of the direct labor cost, and the direct materials cost was $30,000.
What was the direct labor cost?
a. $146,667
b. $135,000
c. $120,000
d. None of the above
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