Gulick Company Developed the Following Data for the Current Year

question 70

Multiple Choice

Gulick Company developed the following data for the current year: $$\begin{array} { l l } \text { Beginning work in process inventory } & \$ 240,000 \\\text { Direct materials used } & 144,000 \\\text { Actual overhead } & 288,000 \\\text { Overhead applied } & 216,000 \\\text { Cost of goods manufactured } & 264,000 \\\text { Total manufacturing costs } & 720,000\end{array}$$ Gulick Company's direct labor cost for the year is

• A)$72,000.
• B)$360,000.
• C)$216,000.
• D)$288,000.

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Definitions:

Batch Size

The amount of production in units of product that is produced after a setup.

Prevention Costs

Expenses incurred to avoid or minimize the number of defects in products before they reach the customer.

Appraisal Costs

Costs associated with measuring and monitoring activities to ensure quality or compliance with standards, typically including testing and inspections.

Non-Value-Added Activities

Operations or tasks that consume resources or time but do not add any value to the product or service from the customer's perspective.