Factory overhead can be charged on the basis of _______.

A. material cost

B. labour cost

C. prime cost

D. direct expenses

Answer: Option C

Solution(By Examveda Team)

Factory overhead can be charged on the basis of prime cost.

In costing, prime cost is the sum of direct materials cost, direct labor cost, and direct expenses involved in the production process. Therefore, factory overhead can be allocated based on the prime cost, which represents the direct costs associated with production.

Therefore, the correct answer is Option C: prime cost.