Given that the direct material cost amounts to $5,500 and the prime cost totals $25,000, what is the value of the direct manufacturing labor?

Multiple choice question for Accounting Concepts. Select an option, then review the explanation below.

Explanation

Prime cost is the sum of direct material cost and direct manufacturing labor. Since the prime cost is $25,000 and direct material cost is $5,500, the direct manufacturing labor cost is $25,000 - $5,500 = $19,500.

Practice related questions from the same subject.

1.In project costing, what is the term used for wages paid to workers during periods of inactivity caused by material shortages?
2.Given that the direct material cost amounts to $85,000 and the direct manufacturing labor cost is $25,000, what is the total prime cost?
3.Which category includes the expenses for employee health care premiums and pension contributions?
4.What term is used to describe the stock of completed products that have not been sold yet?
5.To determine the manufacturing labor costs, which cost is deducted from the manufacturing overhead?

Given that the direct material cost amounts to $5,500 and the prime cost totals $25,000, what is the value of the direct manufacturing labor?

Explanation

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