**Robin Company has the following balances for the current month:**- **Direct materials used:** $10,000- **Direct labor:** $25,000- **Sales salaries:** $9,800- **Indirect labor:** $2,000- **Production manager's salary:** $6,450- **Marketing costs:** $9,650- **Factory lease:** $4,300**Question:** What are Robin's prime costs?**Explanation:**Prime costs are the sum of direct materials and direct labor. In this example:- Direct materials used = $10,000- Direct labor = $25,000Prime Costs = Direct Materials + Direct LaborPrime Costs = $10,000 + $25,000 = $35,000Robin’s prime costs are $35,000. **Question:**What is Robin's total manufacturing overhead?**Multiple Choice Options:**- $37,500- $9,550- $17,100- $13,550[There are no graphs or diagrams accompanying this question.]

In Cost accounting, prime cost means the direct costs incurred for the production of goods. We can…

Robin Company has the following balances for the $10,000 $25,000 $ 9,800 $ 2,000 $ 6,450 $ 9,650 $ 4,300 Direct materials used Direct labor Sales salaries Indirect labor Production manager's salary Marketing costs Factory lease What ere Robin's prime costs?

Robin Company has the following balances for the $10,000 $25,000 $ 9,800 $ 2,000 $ 6,450 $ 9,650 $ 4,300 Direct materials used Direct labor Sales salaries Indirect labor Production manager's salary Marketing costs Factory lease What ere Robin's prime costs?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

**Robin Company has the following balances for the current month:**

- **Direct materials used:** $10,000
- **Direct labor:** $25,000
- **Sales salaries:** $9,800
- **Indirect labor:** $2,000
- **Production manager's salary:** $6,450
- **Marketing costs:** $9,650
- **Factory lease:** $4,300

**Question:** What are Robin's prime costs?

**Explanation:**
Prime costs are the sum of direct materials and direct labor. In this example:

- Direct materials used = $10,000
- Direct labor = $25,000

Prime Costs = Direct Materials + Direct Labor
Prime Costs = $10,000 + $25,000 = $35,000

Robin’s prime costs are $35,000.

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