What is the cost of manufacturing labor for the piece of equipment today?

The following question requires your selection of CCC/CCE Scenario 4 (2.7.50.1.1) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

What is the cost of manufacturing labor for the piece of equipment today?

A. $140,000

B. $875,000

C. $210,000

D. $105,000

View Answer

Answer: A

Explanation:

Given Data:

Present-day price of equipment: $350,000

Manufacturing labor: 40% of total cost

To calculate the cost of manufacturing labor today:

Manufacturing Labor Cost=40%×350,000=$140,000text{Manufacturing Labor Cost} = 40% times 350,000 = $140,000Manufacturing Labor Cost=40%×350,000=$140,000

A. $140,000