Woodcarving Co What Was the Amount of Direct Materials and Direct Labor

question 88

Multiple Choice

Woodcarving Co.incurred the following costs during May: $$\begin{array} { l l } \text { Conversion costs } & \$ 460,000 \\\text { Prime costs } & \$ 390,000 \\\text { Manufacturing overhead } & \$ 315,000\end{array}$$ What was the amount of direct materials and direct labor used in May? $$\begin{array} { c c c } & \text { Direct materials } & \text { Direct labor } \\\text { A) } & \$ 100,000 & \$ 295,000 \\\text { B) } & \$ 105,000 & \$ 215,000 \\\text { C) } & \$ 245,000 & \$ 145,000 \\\text { D) } & \$ 70,000 & \$ 75,000\end{array}$$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Average Variable Cost

The total variable costs divided by the quantity of output produced, showing the variable cost per unit of output.

Economic Loss

A situation where total costs exceed total revenues, resulting in a negative profit for a business.

Short-run Supply Curve

Shows the relationship between the price of a good and the quantity supplied over a short period, when at least one input is fixed.

Minimum Point

The point at which a function reaches its smallest value, often used in the context of costs or optimization problems.