If Estimated Direct Raw Materials and Direct Labour Costs Are

question 14

Multiple Choice

If estimated direct raw materials and direct labour costs are $42 000 in total, what is the direct cost per unit if forecast production is 6000 units?

• A) $7
• B) $8
• C) $14
• D) $18

---

Definitions:

Other Comprehensive Income

This includes revenues, expenses, gains, and losses that are excluded from net income on the income statement.

Equity Method

A method of accounting for investments in which the investor recognizes income based on the proportionate share of the investee’s profit or loss.

Investment Account

An account held at a financial institution or brokerage that is used to hold securities, stocks, bonds, mutual funds, and other investments.