Edward is evaluating some of last year's manufacturing costs for his business, Work It Out, which creates custom-fit exercise
equipment for high-end clients. He is trying to strengthen his own analytical skills by looking at some of the total cost amounts and
working backward to make sure he can find the detailed amounts that comprised these totals. Last year's manufacturing costs are as
follows.
Total manufacturing costs
$618,000
Total applied MOH (based on an MOH rate of $1.80/DL dollar)
288,900
Total cost of goods completed
649,000
Beginning balance in WIP Inventory
75,000
(a)
How much direct labor cost was incurred last year?
Direct labor cost