Zoro Manufacturing Company manufacturers wooden picture frames. Each piece of wood yields 15 frames. Each piece of wood costs $18.75. The direct labor charge is $13.50 per hour. Sixty-five frames can be produced each hour. To the nearest tenth of a cent, what is the prime cost of manufacturing the picture frame?
not sure just what the prime cost means, but the cost per frame is the sum of the cost of the wood and the cost of the labor:
18.75/15 + 13.50/65
1.46
To find the prime cost of manufacturing the picture frames, we need to calculate the total cost of the wood and the direct labor.
First, let's calculate the cost of the wood. Each piece of wood yields 15 frames and costs $18.75. Therefore, the cost of the wood per frame is $18.75 divided by 15, which equals $1.25.
Next, let's calculate the labor cost. The direct labor charge is $13.50 per hour, and 65 frames can be produced each hour. Therefore, the labor cost per frame is $13.50 divided by 65, which equals approximately $0.2077 (rounded to four decimal places).
Now, we can calculate the prime cost by adding the cost of the wood and the labor cost per frame:
Prime cost per frame = Cost of wood per frame + Labor cost per frame
Prime cost per frame = $1.25 + $0.2077
Prime cost per frame ā $1.4577 (rounded to four decimal places)
Therefore, to the nearest tenth of a cent, the prime cost of manufacturing one picture frame is approximately $1.46.