Manufacturing Overhead Applied Is Added to Direct Labour Incurred and What

question 42

Multiple Choice

Manufacturing overhead applied is added to direct labour incurred and what other item to equal total manufacturing costs for the period?

• A)Work in process
• B)Direct materials used
• C)Goods available for sale
• D)Raw materials purchased

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Definitions:

Marginal Resource Cost

The increase in total cost incurred by employing one more unit of a resource, such as labor or capital.

Total Cost

The sum of all costs incurred by a business in the production of goods or services, including fixed and variable costs.

Input

Resources (such as labor, materials, and capital) used in the production process to create goods or services.

Marginal Resource Cost

The additional cost incurred by a firm for using one more unit of input, like labor or raw materials.