Question

FOH rate is based on prime cost is computed by dividing
01)
None
O2)
Estimated FOH
O3)
Estimated Prime cost
04)
Estimated Conversion cost​

Answer 1

Answer:

estimated prime cost

Explanation:

Prime costs are a firm's expenses directly related to the materials and labor used in production. It refers to a manufactured product's costs, which are calculated to ensure the best profit margin for a company. The prime cost calculates the direct costs of raw materials and labor that are involved in the production of a good. Direct costs do not include indirect expenses, such as advertising and administrative costs.

Formula and Calculation of Prime Cost

\text{Prime cost} = \text{Direct raw materials} + \text{Direct labor}Prime cost=Direct raw materials

Answer 2

Answer:

Estímated prime cost is computed by dividing