Samson Company Reported Total Manufacturing Costs of $320000 Manufacturing Overhead

question 196

Multiple Choice

Samson Company reported total manufacturing costs of $320000 manufacturing overhead totaling $52000 and direct materials totaling $64000. How much is direct labor cost?

• A) Cannot be determined from the information provided.
• B) $268000
• C) $256000
• D) $204000

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Definitions:

Diluted Earnings Per Share

A measure of a company's profit divided by the number of shares outstanding, including all possible sources of conversion.

Treasury Stock Method

A method used to compute the diluted shares outstanding by assuming all in-the-money options and warrants are exercised and the proceeds from exercise are used to buy back shares at the average market price.

Market Price

The current price at which an asset or service can be bought or sold in a open and competitive market.

Convertible Bonds

Convertible bonds are fixed-income debt securities that can be converted into a predetermined number of the issuer's equity shares at certain times during their life, usually at the discretion of the bondholder.