The accounting records of Turner Industries, a manufacturer of flash drives, shows the following costs for the year ended December 31, 2011.
|
Direct materials |
$700,000 |
|
Direct labour |
220,000 |
|
Indirect materials |
100,000 |
|
Indirect labour |
135,000 |
|
Variable overhead |
220,000 |
|
Fixed overhead |
325,000 |
|
Variable selling costs |
100,000 |
|
Fixed S&A costs |
185,000 |
The amount of prime costs incurred in 2011 were
920,000
$1,140,000
$1,240,000
$765,000