Determine the amount of direct material direct labor

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Reference no: EM132473959

Perfect Pad manufacturers floor mats for trailers that are used to transport horses. The mats provide for a firm footing surface that quickly sheds water. Mats a e made to customer specifications via orders submitted over an internet site. The mats are completed and shipped in about one day. As a result, Perfect Pad does not maintain any work in process or finished goods inventory. The following costs were incurred in producing and selling mats during August

Synthetic rubber used in the mat

$213.500

Lubricant used In the molding machine

15.500

Factory rent

10.600

Electricity to run the molding machine

2,800

Labor cost of machine operators

45,100

Internet sales site

2,300

Administrative salaries

14.500

Depredation of molding machine

7.800

Salary of factory safety inspector

4.100

Office rent

14,400

Question 1: Evaluate these costs, and determine the amount of direct material direct labor, factory overhead, and selling/general/administrative costs. Next, identify how much is considered to be a "prime cost" and how much is considered to be a "conversion cost."

Reference no: EM132473959

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