The correct answer is A. 155,000.
The prime cost is the direct cost of producing a product. It includes the cost of materials and labor. The factory cost is the total cost of producing a product. It includes the prime cost, as well as factory overhead, which is the indirect cost of producing a product. Office overhead is the indirect cost of running a business. It includes costs such as rent, utilities, and insurance.
The production cost is the total cost of producing a product. It includes the factory cost, as well as office overhead. In this case, the production cost is calculated as follows:
Production cost = Prime cost + Factory cost + Office overhead
= 50,000 + 70,000 + (50/100) * 70,000
= 155,000
Option A is the only option that is consistent with this calculation.