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Finance : Prime Cost

Wholesale company produces circuit breaker containers. The machine operator stamps 15 containers from each strip of aluminum. Each strip costs $1.15. The operator can stamp 540 containers per hour. The direct labor charge is $17.85 per hour. What is the prime cost of manufacturing a circuit breaker container?
a.$.32 b.$.03 c.$.13 d.$.11 e.not given

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Solution. Since the operator can stamp 540 containers per hour, ...

Solution Summary

Prime cost of manufacturing is calculated.

$2.19