Define and compute the following for Lean Technologies for January this year: (i) Prime cost. (ii) Conversion cost. (iii) Operating income.

Question 4 (a) Lean Technologies develops and installs learning software for companies. In January this year, the company generated sales of $155,000 and incurred the following costs: Materials costs Direct labour Overhead Administrative expense $10,000 40,000 20,000 18,000 Assume there is no beginning and ending inventory. Define and compute the following for Lean Technologies for January this year: (1) Prime cost Conversion cost. (111) Operating income. (10 marks)