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

Question

Quizplus · Accepted Answer

Direct labor costs refer to the wages paid to employees who are directly involved in the production process. In this case, the machine operators' wages of $300,000 are considered direct labor costs.

Randall Company Manufactures Chocolate Bars A)$400,000 B)$300,000 C)$175,000 D)$375,000

Randall Company Manufactures Chocolate Bars A)$400,000
B)$300,000
C)$175,000
D)$375,000