Horton Foods bakes and sells 1,000 dozen bagels each week to food service operations.Among the costs are bakers' salaries,$24,000; production management salaries,$16,000; production equipment operating costs,$32,000; and flour and ingredient costs,$15,000.
Required:
(a)Calculate prime costs
(b)Calculate conversion costs.

Question

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The Answer of Horton Foods bakes and sells 1,000 dozen bagels each week to food service operations.Among the costs are bakers' salaries,$24,000; production management salaries,$16,000; production equipment operating costs,$32,000; and flour and ingredient costs,$15,000.
Required:
(a)Calculate prime costs
(b)Calculate conversion costs.

Horton Foods Bakes and Sells 1,000 Dozen Bagels Each Week