At Allen Company, manufacturing overhead is applied based on direct labor hours. Overhead was estimated to be $ and direct labor hours were estimated to be
Actual direct labor costs and actual direct labor hours for the year amounted to $ and hours.
In addition, Allen Company incurred the following actual costs during the year:
Administrative expenses, $
Depreciation expense on fixed assets, $ of the depreciation expense was related to manufacturing activities
Indirect material costs, $
Indirect labor costs, $
Utility expense on the manufacturing facility, $
Insurance expense on the manufacturing facility, $
Marketing expenses, $
Sales & promotion expenses, $
Allen Company had the following inventory balances at the beginning and end of the year:
January December
Finished goods $ $
Work in process
Raw direct materials
During the year, the company purchased $ of raw materials and generated sales of $
What amount of raw materials were used during the period?
What is the amount of prime costs?
