$13,500
$55,600
$60,000
$110,000
Answer is Right!
Answer is Wrong!
The correct answer is $\boxed{\text{C}}$.
Prime cost is the direct costs attributable to the production of a product. It is calculated by adding direct material cost and direct labor cost.
In this case, direct material cost is $85,000 and direct labor cost is $25,000. Therefore, prime cost is $85,000 + $25,000 = $110,000.
Option A is incorrect because it is the direct labor cost.
Option B is incorrect because it is the sum of direct material cost and direct labor cost plus manufacturing overhead.
Option D is incorrect because it is the sum of direct material cost, direct labor cost, and manufacturing overhead plus selling and administrative expenses.