Asked by
Wajiha Khalid
on Nov 18, 2024
Verified
Prime costs consist of factory overhead and direct labor.
Prime Costs
The combined costs of direct labor and direct materials involved in the production of goods.
Factory Overhead
includes all the indirect costs associated with manufacturing, such as utilities, maintenance, and salaries of indirect labor.
Direct Labor
The labor costs directly associated with the manufacturing of a product, including wages of workers physically involved in production.
- Achieve familiarity with the myriad costs entailed in manufacturing, such as direct materials, direct labor, and factory overhead.
- Distinguish between prime costs, conversion costs, and period costs.
Verified Answer
JW
Learning Objectives
- Achieve familiarity with the myriad costs entailed in manufacturing, such as direct materials, direct labor, and factory overhead.
- Distinguish between prime costs, conversion costs, and period costs.