Prime Cost Calculation Steps:

• Identify direct materials cost: $186,000 (raw materials).
• Identify direct labor cost: $75,000 (direct wages).
• Sum direct materials and direct labor: $186,000 +$75,000 = $210,000. Why B is correct:
• Prime cost equals direct materials plus direct labor, per standard cost accounting definition. Why the others are wrong:
• A: Includes only raw materials, omitting direct wages.
• C: Adds factory overheads like depreciation and supervisor salary to prime cost.
• D: Totals all manufacturing costs, including indirect expenses like rent and repairs.

Final answer: B