The following costs were incurred in May: Prime costs during the month totaled:

Question

The following costs were incurred in May:  Prime costs during the month totaled:

Quizplus · Accepted Answer

Prime costs typically include direct materials and direct labor costs. Without more information, it's difficult to determine if any of the costs listed in the table are indirect or overhead costs. However, we can add up the costs that are clearly direct materials and labor costs: 
$22,000 (materials) + $48,000 (direct labor) = $70,000. Therefore, the best choice is C, which is closest to this total.

The Following Costs Were Incurred in May: Prime Costs