A company estimates the following expenditures: interest paid of $17,500; wages paid to workers of $74,600; overhead costs of $12,300; raw materials of $55,000; shipping costs of $7,100 and dividends paid to common stock holders of $15,000. What are the total production costs?
A) $141,900
B) $149,000
C) $166,500
D) $181,500

Question

Quizplus · Accepted Answer

Total production costs include wages, overhead costs, raw materials, and shipping costs. Adding these: $74,600 + $12,300 + $55,000 + $7,100 = $149,000. Interest and dividends are not part of production costs.

A Company Estimates the Following Expenditures: Interest Paid of $17,500;