Consider the data below and answer the questions based on it. Factory Expenses = Rs. 30000 Administrative Expenses = Rs. 20000 Labour Cost = Rs. 25000 Materials = Rs. 35000 Selling Expenses = Rs. 10000 Ascertain the prime cost with the help of the given cost data.

The correct answer is: C. Rs. 70000

Prime cost is the direct cost of producing a product. It includes the cost of materials and labor used in production. In this case, the prime cost is Rs. 70000, which is calculated as follows:

Prime cost = Materials + Labour cost
= Rs. 35000 + Rs. 25000
= Rs. 70000

The other options are incorrect because they do not include the cost of materials.