Given that the direct material cost amounts to $85,000 and the direct manufacturing labor cost is $25,000, what is the total prime cost?

Choose the correct answer

Explanation

Prime cost is calculated by adding direct material cost and direct manufacturing labor cost. Here, $85,000 (materials) + $25,000 (labor) equals $110,000. Therefore, the prime cost is $110,000.

Given that the direct material cost amounts to $85,0… — Accounting Concepts | PakQuizHub