The following operating costs were extracted from the books of Paper Producers Ltd for

the month of February 2020:

Details	$
Purchases of direct raw materials	8,000,000
Stationery	120,000
Warehouse staff salaries	2,200,000
Direct expenses	800,000
Carriage outwards	600,000
Depreciation of factory machines	500,000
Electricity	700,000
Wages of truck drivers	2,400,000
Production supervisors salaries	3,000,000
Advertising expenses	1,500,000
Sales promotion costs	1,000,000
Training for sales staff	650,000
Wages of production workers	4,000,000
Insurance	1,400,000
Salesmen commission	2,500,000
Indirect raw materials	1,600,000
Indirect factory labour	1,800,000
Miscellaneous expenses	1,300,000
Depreciation of office machinery	400,000
Administrative salaries	3,500,000

Apportionments of the following charges are as indicated below:	Selling	Production	Administration	Distribution
Miscellaneous expenses	30%	25%	20%	25%
Insurance	25%	40%	15%	20%
Electricity	15%	45%	30%	10%

The following operating costs were extracted from the books of Paper Producers Ltd for

the month of February 2020:

Details	$
Purchases of direct raw materials	8,000,000
Stationery	120,000
Warehouse staff salaries	2,200,000
Direct expenses	800,000
Carriage outwards	600,000
Depreciation of factory machines	500,000
Electricity	700,000
Wages of truck drivers	2,400,000
Production supervisors salaries	3,000,000
Advertising expenses	1,500,000
Sales promotion costs	1,000,000
Training for sales staff	650,000
Wages of production workers	4,000,000
Insurance	1,400,000
Salesmen commission	2,500,000
Indirect raw materials	1,600,000
Indirect factory labour	1,800,000
Miscellaneous expenses	1,300,000
Depreciation of office machinery	400,000
Administrative salaries	3,500,000

Apportionments of the following charges are as indicated below:	Selling	Production	Administration	Distribution
Miscellaneous expenses	30%	25%	20%	25%
Insurance	25%	40%	15%	20%
Electricity	15%	45%	30%	10%

Notes:

1. Calculate the Prime cost.
2. Calculate the Factory overheads.