Direct labor and direct material costs


Brighton Services repairs locomotive engines. It employs 100 full-time workers at $20 per hour. Since beginning operations last year, it has priced the various jobs by marking up direct labor and direct material costs 20 percent. Despite operating at capacity, however, last year's performance was a great disappointment to the managers. In total, 10 jobs were accepted and completed, incurring the following total costs:

Direct materials $ 1,035,400
Direct labor 4,000,000
Manufacturing overhead 1,040,000

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Accounting Basics: Direct labor and direct material costs
Reference No:- TGS081738

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