Which of the following is true of a direct materials cost?
a.It is sometimes called factory burden.
b.It is not a significant portion of the total product cost.
c.A direct materials cost is included in factory overhead.
d.It is the cost of any material that is an integral part of the finished product.
The answer is option d - It is the cost of any material that is an integral part of the finished product.
Direct materials are always an integral part of any finished products without the final product can not be produced. Hence, option is correct. Direct material is a direct cost also known as prime cost of a product.
Other options are wrong as direct material is not called as factory burden or it is not factory overhead as it a direct cost. Factory burden cost or overhead are indirect costs.
Which of the following is true of a direct materials cost? a.It is sometimes called factory...
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Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 78,000 units of product were as follows: Standard Costs Actual Costs Direct materials 226,200 lbs. at $5.30 223,900 lbs. at $5.10 Direct labor 19,500 hrs. at $16.60 19,950 hrs. at $17.00 Factory overhead Rates per direct labor hr., based on 100% of normal capacity...
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