Solve the Problem. -Kevin Invested Part of His $10,000 Bonus in a Certificate

question 111

Multiple Choice

Solve the problem.
-Kevin invested part of his $10,000 bonus in a certificate of deposit that paid 6% annual interest, and the remainder in a mutual fund that paid 11% annual interest. If his total interest for that year was $800, how much
Did Kevin invest in the mutual fund?

• A) $4000
• B) $6000
• C) $3000
• D) $5000

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the costs of goods produced.

Prime Costs

The total cost of direct materials and direct labor incurred in the production of goods.

Conversion Costs

The combination of labor costs and overhead costs that are incurred to convert raw materials into finished goods.

Direct Labor Cost

The total cost of wages paid to workers directly involved in the production of goods or services, excluding benefits and overtime.