E-PolyLearning

1. The labor related to the manufacturing of the product can be classified under
a. direct manufacturing labor costs
b. indirect manufacturing labor costs
c. work in process cost
d. finished costs
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Answer: (a).direct manufacturing labor costs

2. The direct material costs are added into direct manufacturing costs, to calculate
a. discuss costs
b. prime costs
c. resale cost
d. merchandise costs
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Answer: (b).prime costs

3. The direct manufacturing labor costs is added into manufacturing overhead cost to calculate
a. transaction costs
b. conversion costs
c. resale costs
d. merchandise costs
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Answer: (b).conversion costs

4. In cost terms, the direct manufacturing labor cost is included in
a. manufacturing costs
b. prime costs
c. conversion costs
d. both b and c
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Answer: (d).both b and c

5. The conversion cost is $2000 and the manufacturing overhead cost is $7000, then the direct manufacturing labor cost will be
a. $27,000
b. $13,000
c. $130,000
d. $29,500
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Answer: (b).$13,000

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