Tipsy plc make and sell bottles of Lochnagar whisky. They have classified costs for their first month of business as follows

Advertising expenses	10,000
Direct materials	240,000
Sales team salaries	30,000
Depreciation on machinery in the production unit	10,000
Depreciation on fork lift trucks in the finished goods warehouse	2,000
Direct labour	50,000
Production supervisor costs	20,000
Service centre costs	80,000
1 royalty payable on each bottle of whisky produced	80,000
Administration overheads	23,000
Other production overheads	70,000

The service centre spend 60% of their time supporting the production of the whisky, 10% of their time helping the joint selling & distribution department and the remainder of their time in administration.

During the month they sold 70,000 bottles of whisky at 15 per bottle

Q1 What was the total prime cost for the first month of business

A 240,000

B 290,000

C 370,000

D 518,000