Craigmont Company's direct materials costs are $3,000,000, its direct labor costs total $7,000,000, and its factory...

Question

Question

business accounting

Answer 1

Answer #1

Direct materials = $3,000,000

Direct labor = $7,000,000

Prime cost = Direct materials + Direct labor

= 3,000,000 + 7,000,000

= $10,000,000

Third option is correct.

Factory overhead is not a part of the prime cost.

Answer 2

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