A company's prime costs total $3,000,000 and its conversion costs total $7,000,000.If direct materials are $1,000,000 and factory overhead is $5,000,000,then direct labor is:

A) $4,000,000.
B) $14,000,000.
C) $2,000,000.
D) $1,000,000.
E) $3,000,000.

Prime Costs

Refers to the direct costs of manufacturing a product, including direct materials and direct labor.

Conversion Costs

Expenses incurred when transforming raw materials into finished goods, typically including labor and overhead costs.

Direct Materials

Costs of raw materials that are directly involved in the manufacturing of a product and can be easily traced to it.