The following is from the Wiley CPA Review BEC Online Test Bank.
Used with permission from the Publisher.
Topic: Cost Accounting
Morton Company's manufacturing costs for 2008 were as follows:
Direct materials: $300,000
Direct manufacturing labor: 400,000
Variable Factory overhead: 80,000
Fixed Factory overhead: 50,000
Prime costs totaled
- A: $300,000
- B: $380,000
- C: $700,000
- D: $830,000
The answer will be left in the comments below.
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"C"--prime costs are Direct Materials + Direct Labor.
c. 700,000
C- 700000