Alton Company produces metal belts.During the current month,the company incurred the following product costs: Raw materials $100,000
Direct labor $75,000
Electricity used in the Factory $25,000
Factory foreperson salary $3,750
Maintenance of factory machinery $2,000
Alton Company's direct product costs totaled:

Question

Quizplus · Accepted Answer

Direct product costs include raw materials and direct labor, which total $175,000. The other costs listed are indirect product costs and are not included in direct product costs.

Alton Company Produces Metal Belts