The following data pertains to Lam Co.'s manufacturing operations:
Additional information for the month of April:
Overhead is applied at $10 per direct labor hour.
For the month of April,prime cost incurred was:
A)$75,000.
B)$69,000.
C)$45,000.
D)$39,000. = $75,000 = Material (($18,000 + 42,000-15,000)= $45,000)plus Direct labor of $30,000

Question

The following data pertains to Lam Co.'s manufacturing operations: 
Additional information for the month of April: 
Overhead is applied at $10 per direct labor hour.
For the month of April,prime cost incurred was:
A)$75,000. 
B)$69,000. 
C)$45,000. 
D)$39,000. = $75,000 = Material (($18,000 + 42,000-15,000)= $45,000)plus Direct labor of $30,000

Quizplus · Accepted Answer

Based on the given information, prime cost incurred for the month of April was $75,000, which is the sum of material cost ($45,000) and direct labor cost ($30,000). The question does not provide any other information to suggest a different answer. Therefore, the best choice is A, $75,000.

The Following Data Pertains to Lam Co