Definitions of manufacturing concepts
Interstate Manufacturing produces brass fasteners and incurred the following costs for the year just ended:
|
Materials and supplies used |
|
|
Brass |
$75,000 |
|
Repair parts |
16,000 |
|
Machine lubricants |
9,000 |
|
Wages and salaries Machine operators |
128,000 |
|
Production supervisors |
64,000 |
|
Maintenance personnel |
41,000 |
|
Other factory overhead Variable |
35,000 |
|
Fixed |
46,000 |
|
Sales commissions |
20,000 |
1. Total direct materials consumed
2. Total direct labor
3. Total prime cost
4. Total conversion cost