ssume (1) the direct labor cost of $40,000 is 25% of total conversion costs and 40% of total prime costs, (2) the total selling and administrative expense is $62,000, (3) the only ariable selling and administrative expense is sales commissions of 4% of sales, (4) all manufacturing overhead costs are fixed costs, and (5) there are no beginning or ending ventories. What is the total manufacturing cost? Multiple Choice $112,000 $232,000 $160,000 $220,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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ssume (1) the direct labor cost of $40,000 is 25% of total conversion costs and 40% of total prime costs, (2) the total selling and administrative expense is $62,000, (3) the only
ariable selling and administrative expense is sales commissions of 4% of sales, (4) all manufacturing overhead costs are fixed costs, and (5) there are no beginning or ending
ventories.
What is the total manufacturing cost?
Multiple Choice
$112,000
$232,000
$160,000
$220,000
Transcribed Image Text:ssume (1) the direct labor cost of $40,000 is 25% of total conversion costs and 40% of total prime costs, (2) the total selling and administrative expense is $62,000, (3) the only ariable selling and administrative expense is sales commissions of 4% of sales, (4) all manufacturing overhead costs are fixed costs, and (5) there are no beginning or ending ventories. What is the total manufacturing cost? Multiple Choice $112,000 $232,000 $160,000 $220,000
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