Direct Labor is a (an) :?

To calculate the Prime Cost & Conversion Cost we use the Direct Labor

Prime Cost = Direct Material Cost + Direct Labor Cost

Conversion Cost = Direct Labor Cost +Manufacturing Overheads

answer option c) Both.

Direct labor is also known by name prime cost and Conversion cost.

C.Both is correct answer.

Direct labor is a Component  of both prime cost and conversion cost.

The direct labor costs are both a prime cost and a conversion cost

when it was mixed with direct materials it represents prime cost

but when mixing with over head it represents convertion costs

answer is C both

a. Prime Cost .................................................................................................................