The prime cost for company XYZ was $20,000, while the conversion cost was $25,000. Assume that direct labor cost is three times the direct materials cost and that the manufacturing overhead cost was two times the direct materials cost. Calculate the direct materials cost ($). O a. 15,000 O b. 5,000 Oc 45,000 d. 10,000 e. 30,000
The prime cost for company XYZ was $20,000, while the conversion cost was $25,000. Assume that direct labor cost is three times the direct materials cost and that the manufacturing overhead cost was two times the direct materials cost. Calculate the direct materials cost ($). O a. 15,000 O b. 5,000 Oc 45,000 d. 10,000 e. 30,000
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...
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![The prime cost for company XYZ was $20,000, while the conversion cost was $25,000. Assume that
direct labor cost is three times the direct materials cost and that the manufacturing overhead cost
was two times the direct materials cost. Calculate the direct materials cost ($).
O a. 15,000
O b. 5,000
Oc 45,000
d. 10,000
e. 30,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd6b000ca-b52a-4184-93cf-f27e7a6bce98%2F05ec86c8-d604-4a85-84c5-1ee5aa8913d1%2Ffc6670m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The prime cost for company XYZ was $20,000, while the conversion cost was $25,000. Assume that
direct labor cost is three times the direct materials cost and that the manufacturing overhead cost
was two times the direct materials cost. Calculate the direct materials cost ($).
O a. 15,000
O b. 5,000
Oc 45,000
d. 10,000
e. 30,000
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