Question

Randall Company manufactures chocolate bars. The following were among Randall's manufacturing costs during the current year: Wages Machine operators $ 200,000 Selling and administrative personnel $ 65,000 Materials used Lubricant for oiling machinery $ 15,000 Cocoa, sugar, and other raw materials $ 150,000 Packaging materials $ 90,000 Randall's direct labor costs amounted to:

Answer 1

Randall's direct labor costs amounted to $200,000

Step-by-step explanation:

The direct labor cost is the Wages Machine operators i.e $200,000 as this is related to the production cost and it also included while computing the product cost.

So, the other cost which is given in the question is not considered as a direct labor cost. Hence, we ignored all other cost as they are related to the period cost.