Question
During July, Nemo Ltd manufactured 500 units of a special multilayer fabric called Everflex. The following information from the Everflex production department pertains to July:
During July, Nemo Ltd manufactured 500 units of a special multilayer fabric called Everflex. The following information from the Everflex production department pertains to July:
Direct material purchased: 18 000 metres @ $10.40 per metre
$187 200
Direct material used: 9 500 metres @ $10.40 per metre
98 800
Direct labour: 2 100 hours @ $36.60 per hour
76 860
The standard prime costs for one unit of Everflex are as follows:
Direct materials: 20 metres @ $10 per metre
$200
Direct labour: 4 hours @ $38 per hour
152
Total standard prime cost per unit of output
$352
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