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Commerce · Q309

Costing

Graduate and Post Graduate · Commerce · question 309

Q309

If direct material cost is 5500 and prime cost is 25000, then direct manufacturing labour would be

A.
$19,500
Answer
B.
$30,500
C.
$45,500
D.
$22,500

Answer: Option A

Solution

Answer: Option A
Solution:
Direct manufacturing labour = Prime cost - Direct material cost
= 5500 = $19,500
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