Prime cost is the combination of a manufactured product's costs of direct materials and direct labor. In other words, prime cost refers to the direct production costs.
Prime cost=direct material cost+direct labor cost
Direct material cost of a tabletop is
380×(1÷4)=95 for each tabletop
Direct labor cost
The question says The machinist cuts and polishes five tabletops each hour
Which means 27.50 of direct labor to cut and polish 5 tabletops So direct labor cost for each tabletop is
27.50÷5=5.5
Finally the prime cost of cutting and polishing a tabletop is
Prime cost=95+5.5=100.5
$142.60 for all three employees
Answer:
A.
Step-by-step explanation:
