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Prime cost is $50000 and direct manufacturing labour is $10000, then direct material cost will be

A. $40,000

B. $60,000

C. $52,000

D. $20,000

Answer: Option A

Solution(By Examveda Team)

Direct material cost = Prime cost - Direct manufacturing labour
= $50000 - $10000 = $40,000

This Question Belongs to Commerce >> Costing

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