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In the month of October, Tran Incorporated had salaries of $15,000 for factory managers, $18,000 for financial managers, and $42,000 for company executives. They also had wages of $98,000 for factory workers and $64,000 for office workers. How much of the labor cost would be considered a product cost between October 1 and October 31?
A : increase by $195,000
B : decrease by $83,000
C : increase by $113,000
D : increase by $237,000
Expert Answer
Answer is Option (C) Increase by $113,000
Because, labour cost here = salary to factory managers + wages of factory workers.
= $15,000 + $98,000
= $113,000
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