Test: Exam 1-Online Exam (not proctored) This Question: 5 pts 4 7 of 25 (9 compi

Question

Test: Exam 1-Online Exam (not proctored) This Question: 5 pts 4 7 of 25 (9 compiete)Y Country Furniture Company manufactures furmniture at its Akron, Ohio. factory Some of Rs costs from the past year include S 9,000 16 000 50 500 23,000 3,000 21,000 115,000 10,000 3,000 9.000 155,500 Depreciation on sales office Depreciation on factory equipment Factory supervisor salary Sales commissions Lubricants used in factory equipment Insurance costs for factory Wages paid to factory maintenance workers Fabric used to upholster furniture Freight- in (on raw materials) Costs of delivery to customers Wages paid to assembly- line workers O A. $92.000 O B. $247 .500 OC $368 500 $250.500 Cick to select your answer

Explanation / Answer

Prime costs consists of costs of raw materials and direct labor used to manufacture products

Raw material costs include freight in costs, fabric used to uphold furniture and lumber used to build products that is 95,000 (3,000 plus 10,000 and 82,000).

Direct labor costs are wages paid to assembly line workers - 155,500.

Thus, total prime costs are 250,500 (95,000 plus 155,500).

*Hope the above explanation helps, please comment if further explanation is required. Your rating is appreciated*

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