Given that the direct material cost amounts to $5,500 and the prime cost totals $25,000, what is the value of the direct manufacturing labor?

Choose the correct answer

Explanation

Prime cost is the sum of direct material cost and direct manufacturing labor. Since the prime cost is $25,000 and direct material cost is $5,500, the direct manufacturing labor cost is $25,000 - $5,500 = $19,500.

Given that the direct material cost amounts to $5,50… — Accounting Concepts | PakQuizHub