JAMB Accounting 2018 Objective — Question 17

Question 17 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2018 Objective paper, with the correct answer and a full explanation.

Given: Direct material #2,500, Direct labour #5,000, Direct expenses #1,000, Overhead expenses #1,500. Compute the prime cost

A. #6,500
B. #8,500Correct
C. #6,000
D. #7,500

Explanation

Prime cost consists of all direct costs: Direct material + Direct labour + Direct expenses = 2,500+5,000+1,000 = #8,500.

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