Question

The following costs were incurred in July: Direct materials $33,000 Direct labor $28,000 Manufacturing overhead $69,000 Selling expenses $16,000 Administrative expenses $21,000 Prime costs during the month totaled: A) $97,000 B) $167,000 C) $102,000 D) $61,000

Answer 1

Answer:

Prime cost= $61,000

Explanation:

Giving the following information:

Direct materials $33,000

Direct labor $28,000

The prime costs are the sum of direct material and direct labor.

Prime cost= direct material + direct labor

Prime cost= 33,000 + 28,000

Prime cost= $61,000