Which of the following costs is classified as both a prime cost and a conversion cost?

Multiple Choice

Direct materials.

Direct labor.

Variable overhead.

Ahlheim Corporation has two production departments, Forming and Assembly. The company uses a job$-$order costing system

and computes a predetermined overhead rate in each production department. The Forming Department's predetermined

overhead rate is based on machine$-$hours and the Assembly Department's predetermined overhead rate is based on direct

labor$-$hours. At the beginning of the current year, the company had made the following estimates:

During the current month the company started and finished Job T$924.$ The following data were recorded for this job: