The following data are from Burton Corporation, a manufacturer, for the month of September: Direct materials used Supervisors' salaries Machine operators' wages Sales office rent and utilities Machine depreciation $135,000 $6,000 $200,000 $22,000 $35,000 Secretary to the Chief Executive Officer salary $3,000 Factory insurance Compute the prime costs. A. $344,000 B. $256,000 C. $135,000 D. $335,000 $15,000

Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Compute the prime costs on these accounting question

The following data are from Burton Corporation, a manufacturer, for the month of
September:
Direct materials used
Supervisors' salaries
Machine operators' wages
Sales office rent and utilities
Machine depreciation
$135,000
$6,000
$200,000
$22,000
$35,000
Secretary to the Chief Executive Officer salary $3,000
Factory insurance
Compute the prime costs.
A. $344,000
B. $256,000
C. $135,000
D. $335,000
$15,000
Transcribed Image Text:The following data are from Burton Corporation, a manufacturer, for the month of September: Direct materials used Supervisors' salaries Machine operators' wages Sales office rent and utilities Machine depreciation $135,000 $6,000 $200,000 $22,000 $35,000 Secretary to the Chief Executive Officer salary $3,000 Factory insurance Compute the prime costs. A. $344,000 B. $256,000 C. $135,000 D. $335,000 $15,000
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