Question

Randall Company manufactures chocolate bars. The following were among Randall's manufacturing costs during the current year: Wages Machine operators $ 310,000 Selling and administrative personnel $ 76,000 Materials used Lubricant for oiling machinery $ 26,000 Cocoa, sugar, and other raw materials $ 260,000 Packaging materials $ 200,000 Randall's direct labor costs amounted to:

Answer 1

$310,000

Step-by-step explanation:

The direct labor cost is equal to the wages of machine operators i.e $310,000 as it is directly related to the production units

Moreover, the selling and admin personnel is a period cost that includes the major part of selling and admin expenses, therefore, it would not be considered

Plus the direct labor cost comes under the product cost like direct material cost, direct labor cost, etc

Hence, the direct labor cost is $310,000