The following data are from Burton Corporation, a manufacturer, for the month of September: Compute the prime costs.
A)$344,000
B)$135,000
C)$335,000
D)$256,000

Question

The following data are from Burton Corporation, a manufacturer, for the month of September:  Compute the prime costs.
A)$344,000 
B)$135,000 
C)$335,000 
D)$256,000

Quizplus · Accepted Answer

Prime costs include direct materials and direct labor. Of the salaries and wages listed, only the wages of the machine operators would be considered direct labor as they are the only employees listed who would actually work on the products themselves.
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The Following Data Are from Burton Corporation, a Manufacturer, for the Month