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Direct labor should be ( .%) of total manufacture cost
A-30%
B-52%
C-42%
D-60%
answer C is correct
Correct Answer option D -60%
The correct answer is option (C ) direct labor should be42%n of total manufacture cost.
The answer is C-42%. Prime Cost comprises Direct Material and Direct Labor Cost. From the question DM=30 and DL=70, so Prime Cost=100, which is60% of Total MFG cost so the Total MFG Cost is100/0.6 i.e.,166.7. The direct labor cost would be70/166.7 =42%
A-
30%