Information from the Records of the Cain Corporation for August

question 229

Multiple Choice

Information from the records of the Cain Corporation for August was as follows:
$\begin{array}{llr} \text {Sales } &\$1,230,000\\ \text { Selling and administrative expenses } &210,000\\ \text { Direct materials used } &264,000\\ \text { Direct labour } &300,000\\ \text {Factory overhead* } &405,000\\\end{array}$
*variable overhead is $205,000,fixed overhead is $200,000
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Inventories }$
$\begin{array}{lrr}& \underline{\text {August 1}}& \underline{\text {August 31}}\\\text { Direct materials } & \$ 36,000 & \$ 42,000 \\\text { Work in process } & 75,000 & 84,000 \\\text { Finished goods } & 69,000 & 57,000\end{array}$

-Refer to the figure.What are the prime costs?

• A)$210,000
• B)$264,000
• C)$300,000
• D)$564,000

---

Definitions:

Negligence

The failure to take proper care in doing something, leading to damage or harm to another.

Malpractice

Negligence, incompetence, or unethical behavior by a professional, especially in medicine, leading to harm or injury.

Licensed Professional

An individual who has been granted permission to practice a particular profession by a recognized authority.

Chest Compressions

A critical component of cardiopulmonary resuscitation (CPR), involving pressing down on the chest of a cardiac arrest victim to maintain blood flow.