# The sum of direct materials and direct labor is called

Posted By Admin @ September 03, 2022

#### Question:

The sum of the direct materials costs direct labor costs and manufacturing overhead incurred is the

1) cost of goods manufactured.
3) total; manufacturing costs.
4) total cost of work in process.

3) total manufacturing costs.

Explanation:

Total manufacturing cost is the aggregate of expenses incurred to produce goods or services in a financial period.  Total manufacturing cost includes direct material, direct labor, and overhead cost. Management and shareholders make a comparison of revenues and total manufacturing cost to determine profitability.

The calculation of total manufacturing cost is the addition of direct labor and direct materials and overhead cost. The expense considered are the ones related to producing goods and services meant for sale.

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