Randall Company Manufactures Chocolate Bars Randall's Direct Labor Costs Amounted To:
A) $400,000
B) $300,000

question 33

Multiple Choice

Randall Company manufactures chocolate bars.The following were among Randall's manufacturing costs during the current year: $\begin{array}{c}\begin{array}{lll}\underline{\text { Wages}} \\\text { Machine operators}\\\text { Selling and administrative personnel}\\ \end{array}\begin{array}{lll}\\\$300,000\\\$75,000\end{array}\end{array}$

$\begin{array}{c}\begin{array}{lll}\underline{\text { Materials used}}\\ \text { Lubricant for oiling machinery}\\\text { Cocoa, sugar, and other raw materials}\\\text { Packaging materials}\\ \end{array}\begin{array}{lll}\\\$25,000\\\$225,000\\\$190,000\end{array}\end{array}$


Randall's direct labor costs amounted to:

• A) $400,000
• B) $300,000
• C) $175,000
• D) $375,000

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Definitions:

Batches

Groups of items or goods processed or produced together within a specified time frame in manufacturing or production.

Product Margins

The difference between the selling price of a product and the cost of goods sold, representing the profit made on each product.

Activity-Based Costing

A costing methodology that assigns overhead and indirect costs to specific activities, improving the accuracy of product and service costing.

Activity Cost Pools

A grouping of all costs associated with a particular activity, used in activity-based costing to allocate costs more accurately.