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a) fixed overheads
b) variable overheads
c) direct material
d) direct labor
Answer D. Direct labor (both prime cost and conversion cost)
d. direct labour costs
Prime costs are all the direct costs of a product i.e. those costs that can be traced conveniently to each unit. These include direct materials cost and direct labor cost.
Conversion costs are all manufacturing costs other than direct materials cost. These include direct labor costs and manufacturing overheads.
Option D) is the correct answer
d) direct labor, prime costs include direct materials and direct labor, while the conversion costs include the direct labor and the overhead.
Prime cost=direct material+direct Labor
Conversion cost=Manufacturing overhead+direct Labor
Ans: Direct Labor is common in both.
D) Direct labor is the correct answer .
Prime cost = direct material + direct labor .
conversion cost = manufacturing overhead + direct labor
so answer D is the right answer
d. Direct Labor Cost ........................................ agreed with all
d) direct labor is the element of both prime cost and conversion cost.So it is common element of total cost.
