The following costs were incurred in September: $\begin{array}{ll}
\text { Direct materials } & \$ 39,000 \
\text { Direct labor } & \$ 23,000 \
\text { Manufacturing overhead } & \$ 17,000 \
\text { Selling expenses } & \$ 14,000 \
\text { Administrative expenses } & \$ 27,000
\end{array}$ Prime costs during the month totaled:
A)$79,000
B)$120,000
C)$62,000
D)$40,000

Question

Quizplus · Accepted Answer

Prime costs are the sum of direct materials and direct labor, which total $62,000 ($39,000 + $23,000).

The Following Costs Were Incurred in September Prime Costs During the Month Totaled: A)$79,000 B)$120,000 C)$62,000 D)$40,000

The Following Costs Were Incurred in September Prime Costs During the Month Totaled:
A)$79,000
B)$120,000
C)$62,000
D)$40,000