In April Direct Labor Was 70% of Conversion Cost

question 141

Multiple Choice

In April direct labor was 70% of conversion cost. If the manufacturing overhead for the month was $42,000 and the direct materials cost was $28,000, the direct labor cost was:

• A)$98,000
• B)$65,333
• C)$18,000
• D)$12,000

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Definitions:

Demand Function

An equation that describes the quantity of a good or service demanded at different prices.

Utility

The satisfaction or pleasure that a consumer derives from consuming a good or service.

Income

The total amount of money received by an individual or generated by an entity, typically on a regular basis, from various sources such as wages, investments, or business ventures.

Demand Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of consumers to price changes.