Examveda
Examveda

If direct material cost is $85000 and direct manufacturing labour is $25000, then prime cost would be

A. $13,500

B. $55,600

C. $60,000

D. $110,000

Answer: Option D

Solution(By Examveda Team)

Prime cost = Direct material cost + Manufacturing labour
= $85000 + $25000 = $110,000

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