Given: N
Direct material - 10 000
Direct labour - 5000
Direct expenses - 2000
Factory overhead - 4000
What is the prime cost?

Debbie14

5 years ago

Prime cost are cost that can be traced to the a particular production unit, they're directly related to the manufacturing process. These are direct materials, direct labour, direct expenses and other direct expenditure.
Prime cost=10,000+5,000+2,000=17,000