The following costs were incurred in May: Direct materials $ 39,700 Direct labor $ 23,200 Manufacturing overhead $ 24,000 Selling expenses $ 20,300 Administrative expenses $ 33,900 Prime costs during the month totaled:

$62,900

Explanation:

According to the situation, the solution is as follows

The prime cost is

= Raw material + direct labor

= $39,700 + $23,200

= $62,900

It is a combination of both the raw material and direct labor therefore calculating it we simply added the raw material and direct labor in order to determine the prime cost incurred during the month

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