A company's prime costs total $3,000,000 and its conversion costs total $7,000,000. If direct materials are $1,000,000 and factory overhead is $5,000,000, then direct labor is:
A) $4,000,000.
B) $14,000,000.
C) $2,000,000.
D) $1,000,000.
E) $3,000,000.
C) $2,000,000.
Explanation: Prime Costs = Direct Materials + Direct Labor; $3,000,000 = $1,000,000 + Direct
Labor; Direct Labor = $2,000,000 OR Conversion Costs = Direct Labor + Factory Overhead;
$7,000,000 = Direct Labor + $5,000,000; Direct Labor = $2,000,000.
You might also like to view...
If a 10% stock dividend is declared, an amount equal to the par value of the shares to be distributed should be charged to the retained earnings account
a. True b. False Indicate whether the statement is true or false
The purpose of the Fair Employment Opportunity Act of 1972 was to
Which of the following statements is true?
A. Reputation of the supplier is a critical issue in an outsourcing decision. B. An outsourcing decision involves a purchase offer from a customer at a lower-than-normal selling price. C. Outsourcing decreases the extent of a company's vertical integration. D. Outsourcing decreases the extent of a company's vertical integration and the reputation of the supplier is a critical issue in an outsourcing decision.
Answer the following statements true (T) or false (F)
1. For male speakers, one stereotype of increased pitch variety is femininity. 2. Pauses are perceived the same in all cultures. 3. The focus of articulation is on the production of speech sounds, whereas the focus of pronunciation is on whether the words themselves are said correctly. 4. If you don’t have a neutral dialect, this doesn’t mean your dialect is “bad.”