Mountainburg Industries Has Developed Two New Products but Has Only

Mountainburg Industries has developed two new products but has only enough plant capacity to introduce one product during the current year. The following data will assist management in deciding which product should be selected. $\begin{array}{lrrrr}&\text { Product L } &\text { Product W}\\\text { Direct materials } & \$ 44 & \$ 36 \\\text { Machining labor (\$12hour) } &18 & 15 \\\text { Assembly labor (\$10/hour) } & 30 & 10 \\\text { Variable overhead (\$8/hour) } & 36 & 18 \\\text { Fixed overhead (4/hour) } & 18 & 9\\ \text { Total Manufacturing Cost } &\$ 146 &\$ 88 \\ \text { Estimated selling } \mathrm{p} & \$170 &\$100 \\\text { Actual research and development costs } & \$ 240,000 & \$ 175,000 \\ \text { Estimated advertising costs } & \$ 500,000 & \$ 350,000 \\\end{array}$ Mountainburg's fixed overhead includes rent and utilities, equipment depreciation, and supervisory salaries. Selling and administrative expenses are not allocated to individual products.
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Direct material costs for Mountainburg's two new products are

A) Prime costs.
B) Conversion costs.
C) Opportunity costs.
D) Period costs.