The following costs were incurred in April: Direct materials $45,300 Direct labor $23,800 Manufacturing overhead $17,500...

The following costs were incurred in April: Direct materials $45,300 Direct labor $23,800 Manufacturing overhead $17,500 Selling expenses $16,800 Administrative expenses $30,200 Prime costs during the month totaled: ? $41,300 ? $69,100 ? $86,600 ? $133,600

Expert Solution

Prime cost is the combination of a manufactured product's costs of direct materials and direct labor. In other words, prime cost refers to the direct production costs. Indirect manufacturing costs are not part of prime cost.

In the given problem for calculating prime cost direct material and direct labour are considered. The remaining i.e., manufacturing overheads comes under – factory cost, administration expenses comes under - cost of production and selling expenses comes under - total cost.

So, Prime cost total for the month is = Direct material +Direct labour

= $45,300 + 23,800

= $ 69,100

ekkarill92 answered 1 year ago

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