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 soaps for $27 each? What is the total prime cost incurred by Tyler for the next month? (Assume the month has 30 days)?

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The prime cost is the sum of all the direct costs involved in the production of goods which includes ... View the full answer