Direct labour costs charged to production during the year amounted to:
A) $135,000.
B) $216,000.
C) $225,000.
D) $360,000.

Question

Quizplus · Accepted Answer

The direct labour costs charged to production during the year is calculated as follows:

Direct labour cost per unit = $15 + $3 = $18 
Total number of units produced = 12,500 
Direct labour costs charged to production = Direct labour cost per unit x Total number of units produced 
= $18 x 12,500 = $225,000

Direct Labour Costs Charged to Production During the Year Amounted