Question
Tylers Inc. makes soap. Tyler plans to produce 5000 soaps next month. 5000 soaps require 3000 tons of detergent at the cost of $11 a
Tylers Inc. makes soap. Tyler plans to produce 5000 soaps next month. 5000 soaps require 3000 tons of detergent at the cost of $11 a ton. Tyler also estimates the need for 10 workers to work 8 hours a day to meet the next months production target. The current labor rate is $16.50/hr. Tyler estimates fixed manufacturing overhead cost to be $42,000 for the year and variable manufacturing overhead to be $15 per labor hour. The company plans to sell the soaps for $27 each. What is the total prime cost incurred by Tyler for the next month? (Assume the month has 30 days)
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