Perfect Pad manufacturers floor mats for trailers that are used to transport horses. The mats provide for a firm footing surface that quickly sheds water. Mats are made to customer specifications via orders submitted over an internet site. The mats are completed and shipped in about one day. As a result, Perfect Pad does not maintain any work in process or finished goods inventory.

The following costs were incurred in producing and selling mats during August:

Synthetic rubber used in the mat $134,300

Lubricant used in the molding machine 14,000

Factory rent 9,600

Electricity to run the molding machine 2,600

Labor cost of machine operators 34,100

Internet sales site 1,500

Administrative salaries 12,500

Depreciation of molding machine 7,400

Salary of factory safety inspector 3,500

Office rent 13,500

Evaluate these costs, and determine the amount of direct material, direct labor, factory overhead, and selling/general/administrative costs. Next, identify how much is considered to be a "prime cost" and how much is considered to be a "conversion cost."

Explanation:

The computation are as follows:

For direct material

= Synthetic rubber used in the mat + Lubricant used in the molding machine

= $134,300 + $14,000

= $148,300

For direct labor

= Labor cost of machine operators

= $34,100

For factory overhead

= Factory rent + Electricity to run the molding machine + Depreciation of molding machine + Salary of factory safety inspector

= $9,600 + $2,600 + $7,400 + $3,500

= $23,100

For selling/general/administrative costs.

= Office rent  + Administrative salaries + Internet sales site

= $13,500 + $12,500 + $1,500

= $27,500

Now the prime cost is

= Direct material + Direct labor

= $148,300 + $34,100

= $182,400

And, the conversion cost is

= Direct labor + factory overhead cost

= $34,100 + $23,100

= $57,200

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.

answerindustrial revolution;