The Following Costs Are Included in a Recent Summary of Data

Multiple Choice

The following costs are included in a recent summary of data for a company: advertising expense,$85,000; depreciation expense - factory building,$133,000; direct labor,$250,000; direct material used,$300,000; factory utilities,$105,000; and sales salaries expense,$150,000.Determine the dollar amount of prime costs.

A) $1,023,000
B) $550,000
C) $488,000
D) $235,000
E) $238,000