The 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 $100,000 + $75,000 = $175,000. The other costs, such as electricity, factory foreperson salary, and maintenance, would be considered indirect costs.

The Alton Company Produces Metal Belts