The Following Costs Are Included in a Recent Summary of Data

question 137

Multiple Choice

The following costs are included in a recent summary of data for a company: advertising expense,$85,000; depreciation expense - factory building,$133,000; direct labor,$250,000; direct material used,$300,000; factory utilities,$105,000; and sales salaries expense,$150,000.Determine the dollar amount of prime costs.

• A) $1,023,000
• B) $550,000
• C) $488,000
• D) $235,000
• E) $238,000