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LO 4.1Burnham Industries incurs these costs for the month:

What is the prime cost?

User Tomlogic
by
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1 Answer

1 vote

Answer:

$5,000

Step-by-step explanation:

Given that,

Direct material cost = $2,000

Direct labor cost = $3,000

Prime cost is the sum total of direct material and direct labor cost.

Prime cost:

= Direct material cost + Direct labor cost

= $2,000 + $3,000

= $5,000

Therefore, the prime cost is $5,000.

Note:

Table is missing from the question so I have attached the table.

LO 4.1Burnham Industries incurs these costs for the month: What is the prime cost-example-1