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Ugo [173]
3 years ago
12

When using normal costing, the total production cost of a job is composed of:Multiple Choicedirect material, direct labor, manuf

acturing overhead, and outlays for selling costs.direct material, direct labor, and applied manufacturing overhead.direct material, direct labor, and actual manufacturing overhead.direct material and direct labor, only.direct material, direct labor, manufacturing overhead, and outlays for both selling and administrative costs.
Business
1 answer:
Feliz [49]3 years ago
8 0

Answer:

The correct answer is letter "B": direct material, direct labor, and applied manufacturing overhead.

Explanation:

Normal costing is the process of assigning inherent expenditures of productions to the items being manufactured. In essence, those costs are raw materials and labor. In cost accounting terms, they are assigned per unit as direct materials and direct labor.

Besides, normal costing includes manufacturing overhead which refers to the costs of production that are not easy to be traced such as depreciation, rent or utilities. Thus, <em>normal costing is composed of direct materials, direct costs, and manufacturing overhead.</em>

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Each deposit is invested at 12%, but for a different amount of years. So, the best thing would be to separate the three, calculate their value at the end of the third year for separated, and then obtain the grand total by adding up the results.

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