Service Company - Bill Johnson owns and operates three Frazer Speedo outlets in Wichita, Kansas. Frazer Speedo is an oil and lubrication service outlet one of many outlets popular throughout the Midwest. The Frazer Speedo outlets also change transmission and power steering fluids. In May, purchases of materials equaled $80,000, the beginning inventory of materials was $47,300, and the ending inventory of materials was $15,250. Payments to direct labor during the month totaled $63,000. Overhead incurred was $110,000. The Wichita outlet also spent $5,000 on advertising during the month. A franchise fee of $2,000 per outlet is paid every month. Revenues for May were $400,000. REQUIRED: What was the cost of materials used for oil and lubrication services during May? 2. What was prime cost for May? 3. What was conversion cost for May? What was total service cost for May? 1. 4