Factory cost - Prime cost
Factory cost + Prime cost
Prime cost + Direct cost
Factory cost + Direct expenses
Answer is Right!
Answer is Wrong!
The correct answer is: D. Factory cost + Direct expenses.
Factory overhead is the cost of production that is not directly attributable to the cost of a single unit of product. It includes costs such as indirect labor, indirect materials, and factory overhead.
Factory cost is the total cost of production, including direct labor, direct materials, and factory overhead.
Prime cost is the total cost of direct labor and direct materials.
Direct cost is the cost of materials and labor that can be directly traced to a specific product.
Therefore, factory overhead is equal to factory cost plus direct expenses.