XO,IncReports the Following Cost Information for March What Is the Amount of Direct Labor Incurred by XO

question 190

Multiple Choice

XO,Inc.reports the following cost information for March: $$\begin{array} { | l | r | } \hline \text { Cost of Goods Manufactured } & \$ 71,000 \\\hline \text { Manufacturing Overhead } & 18,300 \\\hline \text { Finished Goods Inventory, March 1 } & 4,000 \\\hline \text { Finished Goods Inventory, March 31 } & 2,000 \\\hline \text { Work-in-Process Inventory, March 1 } & 9,970 \\\hline \text { Work-in-Process Inventory, March 31 } & 1,240 \\\hline \text { Direct Materials Used } & 25,020 \\\hline\end{array}$$
What is the amount of direct labor incurred by XO in March?

• A) $62,270
• B) $6,720
• C) $71,000
• D) $18,950

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Definitions:

Pay Scale

A structured range of wages set by an employer, indicating different levels of payment for different positions or levels of experience.

Job Satisfaction

The level of contentment a person feels with their job, including aspects like work tasks, environment, and compensation.

Theory X

A management assumption which suggests that employees are inherently lazy and will avoid work if they can, thereby needing to be closely supervised and controlled.

Extrinsic Rewards

Rewards that are external to the task being performed and are often tangible, such as money, prizes, or other physical rewards, used to motivate behavior.