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Rustic Living Furniture Company manufactures furniture at its central Kentucky factory. Some of its costs from the past year include: Wages paid to maintenance workers Fabric used to upholster fumiture Wages paid to assembly - line workers $60,500 $80,300 $100,600 Lumber used to build product $15,300 Sales commissions $7,700 $21,000 Insurance costs for factory Freight-in (on raw materials) Utilities in factory $3,700 $12,000 $60,900 Factory supervisor salary Depreciation on factory equipment $18,700 O A. $15,300. O B. $95,600. O C. $99,300. O D. $80,300. Sales commissions $1,700 $21,000 Insurance costs for factory Freight-in (on raw materials) Utilities in factory Factory supervisor salary Depreciation on factory equipment $3,700 $12,000 $60,900 $18,700 Utilities in sales office $26.000 Costs of delivery to customers Depreciation on sales office Lubricants used in factory equipment $8,500 $1,800 $500 Direct material costs for Rustic Living Funiture Company totaled O A. $15,300. O B. $95,600. O C. $99,300. D. $80,300.

User SeongHo
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1 Answer

5 votes

Answer:

The correct answer is A: $15,300

Step-by-step explanation:

Giving the following information:

The only cost of Direct Material is Lumber used to build the product. If Insurance costs for factory Freight-in (on raw materials) were the Freight-in and not the insurance it will be included as well.

Direct material cost= $15,300

User Daniel Poirot
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