Direct Materials and Direct Labor of a Company Total $8000000

question 64

Multiple Choice

Direct materials and direct labor of a company total $8000000. If manufacturing overhead is $4000000 what is direct labor cost?

• A) $4000000
• B) $8000000
• C) $0
• D) Cannot be determined from the information provided

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Definitions:

Endowment Contributions

Donations endowed to an institution meant for investment to provide a continuous source of funding.

Externally Restricted

Pertains to funds or resources that are subject to restrictions regarding their use, imposed by external parties or agreements.

Deferral Method

An accounting method whereby revenue or expenses are postponed to future accounting periods to match revenues with expenses in the period in which they occur.

Encumbrance System

A financial accounting system that tracks commitments made against budgeted funds before actual expenditures are recorded.