Randall Company manufactures chocolate bars.The following were among Randall's manufacturing costs during the current year: $\begin{array}{lrr}
\text { Wages }\
\text { Machine operators } &\$300,000\
\text { Selline and administrative personnel } &\$75,000\
\text { Materials used }\
\text { Lubricant for oiling machinery } &\$25,000\
\text { Cocoa, sugar, and other raw materials } &\$225,000\
\text {Packaging materials } &\$190,000\
\end{array}$

Randall's direct labor costs amounted to:

Question

Randall Company manufactures chocolate bars.The following were among Randall's manufacturing costs during the current year: $\begin{array}{lrr}
\text { Wages }\
  \text { Machine operators } &\$300,000\
 \text { Selline and administrative personnel } &\$75,000\
\text { Materials used }\
 \text { Lubricant for oiling machinery  } &\$25,000\
 \text { Cocoa, sugar, and other raw materials  } &\$225,000\
 \text {Packaging materials  } &\$190,000\
\end{array}$

Randall's direct labor costs amounted to:

Quizplus · Accepted Answer

Direct labor costs refer to the wages paid to workers who are directly involved in the production of goods. In this case, the machine operators are directly involved in manufacturing the chocolate bars, making their wages ($300,000) the direct labor costs. The wages for selling and administrative personnel are not considered direct labor costs because they are not directly involved in the production process.

Randall Company Manufactures Chocolate Bars Randall's Direct Labor Costs Amounted To: A) $400,000

Randall Company Manufactures Chocolate Bars Randall's Direct Labor Costs Amounted To:
A) $400,000