Question
9. Farber Company employs a normal (nonstandard) absorption cost system. The following information is from the financial records of the company for the year. Total
9. Farber Company employs a normal (nonstandard) absorption cost system. The following information is from the financial records of the company for the year.
| Total manufacturing costs were $2,500,000. |
| Cost of goods manufactured was $2,425,000. |
| Applied factory overhead was 30% of total manufacturing costs. |
| Factory overhead was applied to production at a rate of 80% of direct labor cost. |
| Work-in-process inventory at January 1 was 75% of work-in-process inventory at December 31. |
Question
Farber Companys total direct labor cost for the year is
-
A.$909,375
-
B.$937,500
-
C.$750,000
-
D.$600,000
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Management and Cost Accounting
Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
6th edition
1292063467, 978-1292063461
