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

question 32

Multiple Choice

Furniture Co.incurred the following costs during 2016: $\begin{array}{ll}\text { Conversion costs } & \$ 240,000 \\\text { Prime costs } & \$ 210,000 \\\text { Manufacturing overhead } & \$ 115,000\end{array}$ What was the amount of direct materials and direct labor used for the year? $\begin{array}{lll}&\text { Direct materials } & \text { Direct labor } \\\text { A) } & \$ 95,000 & \$ 100,000 \\\text { B) } & \$ 105,000 & \$ 80,000 \\\text { C) } & \$ 125,000 & \$ 90,000 \\\text { D) } & \$ 85,000 & \$ 125,000\end{array}$

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

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Definitions:

19th Century

Refers to the years from 1801 to 1900, a period marked by significant industrial, social, and political changes worldwide.

Earliest Antitrust Act

Legislation aimed at promoting competition and preventing monopolies, often referring to the Sherman Antitrust Act of 1890 in the United States.

Sherman Act

A landmark federal statute in the United States antitrust law passed in 1890 which prohibits monopolistic practices and promotes competition.

Horizontal Merger

A corporate strategy where two or more companies that produce similar products or services merge.