BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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TEN WALLETS ARE MADE FROM ONE PIECE OF LEATHER COSTING $38.90. WHAT IS THE DIRECT MATERIAL COST PER ITEM?
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$389
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$2.39
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$3.89
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$9.89
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Explanation:
Detailed explanation-1: -Direct materials. Add the total cost of materials purchases in the period to the cost of beginning inventory, and subtract the cost of ending inventory. The result is the cost of direct materials incurred during the period.
Detailed explanation-2: -The pay rate multiplied by the time spent working on the project yields the direct labor cost, or Direct Labor Cost= Pay Rate * Project Time.
Detailed explanation-3: -Direct Material Cost is the total cost incurred by the company in purchasing the raw material along with the cost of other components, including packaging, freight and storage costs, taxes, etc., that are related directly to the manufacturing and production of various products of the company.
There is 1 question to complete.