A company's prime costs total $4,500,000 and its conversion costs total $5,500,000.If direct materials costs are $2,000,000,calculate the overhead costs:

A) $2,500,000.
B) $3,500,000.
C) $2,000,000.
D) $1,000,000.
E) $3,000,000.

Prime Costs

Prime costs are the direct costs of production, including direct materials and direct labor, but excluding indirect expenses like manufacturing overhead.

Conversion Costs

The costs incurred to convert raw materials into a finished product, including labor and manufacturing overhead expenses.

Overhead Costs

Indirect costs related to the general operation of a business that cannot be directly tied to a specific product or service.