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Commerce · Q299

Costing

Graduate and Post Graduate · Commerce · question 299

Q299

Direct material cost is 75000 and direct manufacturing labour is 20000, then prime cost would be

A.
$55,000
B.
$37,500
C.
$95,000
Answer
D.
$26,000

Answer: Option C

Solution

Answer: Option C
Solution:
Prime cost = Direct material cost + Direct manufacturing labour
= 20000 = $95,000