A manufacturing company is about to start manufacturing a new product, the FX200

The management accountant has provided the following information about the unit cost of the FX200:

Direct labour (3 hours @R10/hr)

Indirect labour (2 hours @R9/hr)

Direct material (4 kg @R5/kg)

Indirect material R10

Direct expenses R4

Indirect production expenses R7

Selling and distribution overhead R5

For one unit of FX200, calculate the following:

a) The prime cost

b) The total production cost

c) The full cost

Answer rating: 100% (QA)

a Prime cost Prime cost is a cost which includes direct material and direct labour Prime ... View the full answer