Answer:
The correct answer is C.
Explanation:
Giving the following information:
A company's prime costs total $3,000,000 and its conversation costs a total of $7,000,000. if direct materials are $1,000,000 and factory overhead is $5,000,000 .
We know that:
Prime costs= direct material + direct labor
Conversion costs= direct labor + factory overhead
Therefore:
3,000,000= 1,000,000 + DL
2,000,000= DL
To confirm:
7,000,000= DL + 5,000,000
DL= 2,000,000
