Question: This item is based on the following information pertaining to Arp Co.'s manufacturing operations:

Inventories 3/1/89 3/31/89

Direct Materials $36,000 $30,000

Work-in-process 18,000 12,000

Finished Goods 54,000 72,000

Additional information for the month of March 1989:

Direct materials purchased   $84,000

Direct labor payroll              60,000

Direct labor rate per hour      7.50

Factory overhead rate per direct labor hour 10.00

For the month of March 1989, prime cost was

Question 1 options:

A) $144,000

B) $120,000

C) $150,000

D) $ 90,000