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QUESTION

The Childers Company manufactures widgets. During the fiscal year just ended, the company incurred prime costs of $1.5 million and conversion costs...

The Childers Company manufactures widgets. During the fiscal year just ended, the company incurred prime costs of $1.5 million and conversion costs of $1.8 million. Overhead is applied at  the rate of 200% of direct labor cost. How much of the above cost represent direct materials cost?

A. $1,500,000

B. $300,000

C. $900,000

D.$600,000

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