Nobel Ltd is a wool coat manufacturer. It produced 80 units in September. The following cost information is available: • Wool fabric: $150 per unit • Depreciation of production equipment: $3,000 per month • Research and development: $1,000 per month • Wages of staff involved in cutting, sewing and finishing: $30 per unit • Designers' salary: $23,000 per month • Advertising costs: $900 per month • Indirect material: $40 per unit • Salary of factory supervisor: $16,000 per month What is the total prime costs for Nobel Ltd in September? a. 14,400 b. 12,000 c. 24,600 d. 22,200
Nobel Ltd is a wool coat manufacturer. It produced 80 units in September. The following cost information is available: • Wool fabric: $150 per unit • Depreciation of production equipment: $3,000 per month • Research and development: $1,000 per month • Wages of staff involved in cutting, sewing and finishing: $30 per unit • Designers' salary: $23,000 per month • Advertising costs: $900 per month • Indirect material: $40 per unit • Salary of factory supervisor: $16,000 per month What is the total prime costs for Nobel Ltd in September? a. 14,400 b. 12,000 c. 24,600 d. 22,200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Nobel Ltd is a wool coat manufacturer. It produced 80 units in September. The following cost information is available:
• Wool fabric: $150 per unit
•
• Research and development: $1,000 per month
• Wages of staff involved in cutting, sewing and finishing: $30 per unit
• Designers' salary: $23,000 per month
• Advertising costs: $900 per month
• Indirect material: $40 per unit
• Salary of factory supervisor: $16,000 per month
What is the total prime costs for Nobel Ltd in September?
a. 14,400
b. 12,000
c. 24,600
d. 22,200
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