Tyler's Inc. makes soap. Tyler plans to produce 5000 soaps next month. 5000 soaps require 2600 tons of detergent at the cost of $13 a ton. Tyler also estimates the need for 8 workers to work 8 hours a day to meet the next month's production target. The current labor rate is $ 16.50/hr. Tyler estimates fixed manufacturing overhead cost to be $47,000 for the year and variable manufacturing overhead to be $9 per labor hour. The company plans to sell the soa for $27 each. What is the total prime cost incurred by Tyler for the next month? (Assume the month has 30 days)

Tyler's Inc. makes soap. Tyler plans to produce 5000 soaps next month. 5000 soaps require 2600 tons of detergent at the cost of $13 a ton. Tyler also estimates the need for 8 workers to work 8 hours a day to meet the next month's production target. The current labor rate is $ 16.50/hr. Tyler estimates fixed manufacturing overhead cost to be $47,000 for the year and variable manufacturing overhead to be $9 per labor hour. The company plans to sell the soa for $27 each. What is the total prime cost incurred by Tyler for the next month? (Assume the month has 30 days)

Name: Tyler's Inc. makes soap. Tyler plans to produce 5000 soaps next month
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Description: Tyler's Inc. makes soap. Tyler plans to produce 5000 soaps next month. 5000 soaps require2600 tons of detergent at the cost of $13 a ton. Tyler also estimates the need for 8 workers towork 8 hours a day to meet the next month's production target. Th

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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