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Anna35 [415]
2 years ago
12

Prime cost is directly related to production. So, per unit prime cost can be calculated easily. While on the other hand, overhea

d does not have direct relationship with production. So, to calculate per unit cost, overhead is classified according to functions.” Explain this statement and also summarize all the overheads according to their functional classification.
Business
1 answer:
Musya8 [376]2 years ago
8 0

Basically, a firm's prime cost equals the total direct costs of production which includes the cost of raw materials and labor.

  • The prime cost equation is {Cost of raw materials + Direct labor}

The overhead cost refers to those cost incurred while running a firm but can not be linked to creation of a product or service.

  • Overhead expenses is the cost remaining after deduction of direct labor, direct materials and direct expenses.

In conclusion, the prime cost and overhead cost are both significant in production of finished goods.

Read more about overhead cost

<em>brainly.com/question/4473400</em>

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How is unit labor cost computed? a. By dividing the total level of output by the total cost of workers b. By dividing the total
elena-14-01-66 [18.8K]

Answer:

The correct answer is letter "C": By dividing the average cost of workers by their average levels of output.

Explanation:

The Unit of Labor cost measures how much it costs to compensate and employee per unit manufactured. It is calculated by dividing the average cost of employees with an average level of production. The result is expressed as a percentage of the labor compensation per hour in regards to the units produced without the same time.

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4 years ago
Units Unit Cost Inventory, Jan. 1 8,000 $11 Purchase, June 19 13,000 12 Purchase, Nov. 8 5,000 13 If 9,000 units are on hand at
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Answer:

The answer is: $100,000

Explanation:

Under LIFO (last in, first out) costing method, we use the oldest costs are used to determine the ending inventory:

We were given the following data:

  • Jan. 1: 8,000 purchased at $11 per unit
  • June 19: 13,000 purchased at $12 per unit
  • Nov. 8: 5,000 purchased at $13 per unit

If the ending inventory had 9,000 units, then its total cost is:

Ending inventory = (8,000 units x $11 per unit) + (1,000 units x $12 per unit)

Ending inventory = $88,000 + $12,000 = $100,000

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3 years ago
Tricia’s Decor purchased merchandise from House Beautiful and issued a promissory note. Tricia should record the transaction by
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When Alfred Weber published his book Theory of the Location of Industries (1909), what did he select as the critical determinant
ELEN [110]

Answer:

Transportation costs.

Explanation:

Alfred Weber lamented in his theory that the industries would set up where the least cost of transportation of raw material and finished goods would incur.

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