Randall Company manufactures chocolate bars. The following were among Randall's manufacturing costs during the current year: $\begin{array}{llr}
\text { Wages}\
\
\text { Machine operators } &\$340,000\
\text { Selling and administrative personnel } &\$79,000\
\text { Materials used } &\\
\text { Lubricant for oiling machiner} &\$29,000\
\text { Cocoa, sugar, and other raw materials } &\$290,000\
\text {Packacinc materials } &\$230,000\
\end{array}$
Randall's direct labor costs amounted to:
A) $183,000
B) $444,000
C) $523,000
D) $340,000

Question

Randall Company manufactures chocolate bars. The following were among Randall's manufacturing costs during the current year: $\begin{array}{llr}
  \text { Wages}\
\
  \text { Machine operators } &\$340,000\
 \text { Selling and administrative personnel } &\$79,000\
 \text { Materials used } &\\
 \text {  Lubricant for oiling machiner} &\$29,000\
 \text { Cocoa, sugar, and other raw materials } &\$290,000\
 \text {Packacinc materials  } &\$230,000\
\end{array}$
 Randall's direct labor costs amounted to:
A) $183,000
B) $444,000
C) $523,000
D) $340,000

Quizplus · Accepted Answer

Direct labor costs refer to wages paid to employees who are directly involved in the production process. In this case, the machine operators' wages of $340,000 are considered direct labor costs.

Randall Company Manufactures Chocolate Bars Randall's Direct Labor Costs Amounted To: A) $183,000 B) $444,000

Randall Company Manufactures Chocolate Bars Randall's Direct Labor Costs Amounted To:
A) $183,000
B) $444,000