The following costs were incurred in September: Manufacturing overhead

Accounting Nov 05, 2020

The following costs were incurred in September: Manufacturing overhead...........$17,000 Direct materials..... $23,000 Selling expenses...... ..$14,000 Direct materials....... ..$39,000 Administrative expenses ............$27,000 Prime costs during the month totaled: (A) $40,000 B) $62,000 C) $120,000 D) $79,000

Expert Solution

Solution:

Prime cost during the month = Direct materials + Direct labor = $23,000 + $39,000 = $62,000

Hence option B is correct.

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