Question

Randall Company manufactures chocolate bars. The following were among Randall's manufacturing costs during the current year: $200,000 $ 65,000 Wages: Machine operators Selling and administrative personnel Materials used: Lubricant for oiling machinery Cocoa, sugar, and other raw materials Packaging materials $ 15,000 $150,000 $ 90,000 Randall's direct labor costs amounted to:

Answer 1

Correct answer-----$200,000

.

Only the machine operator cost will be considered as direct labor.

Salary of selling and administrative personnel is not a production cost.