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:

Firms

Firms refer to business entities or organizations that produce goods or provide services with the aim of making a profit.

Industry

A sector of the economy that is made up of manufacturing, production, or provision of services within a specific domain of activity or expertise.

Marginal Revenue

The supplementary income received from the sale of an additional unit of a product or service.