Answer:
Prime cost = $94,000
Conversion cost = $135,400.
Explanation:
Prime cost is the addition of direct material cost , direct labor cost and direct expenses.
Conversion cost is the cost of converting raw materials into finished product. It s the sum of direct labour cost and production overheads.
For Bento Engineering,
Prime cost = direct labour cost (since no figure is given for direct material and direct expenses.)
Prime cost = $94,000
Conversion cost = Direct labour cost + overheads
Conversion cost = $94,000 + 126,000
= $135,400.
Prime cost = $94,000
Conversion cost = $135,400.
