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During the month of April, direct labor cost totaled $13,055 and direct labor cost was 35% of prime cost. If total manufacturing costs during April were $79,700, the manufacturing overhead was:

Respuesta :

Answer:

$42,400

Explanation:

Given that,

Direct labor cost = $13,055

Direct labor cost was 35% of prime cost

Total manufacturing costs during April = $79,700

Prime cost = Total direct labor cost ÷ 35%

                  = $13,055 ÷ 35%

                  = $37,300

Manufacturing overhead:

= total manufacturing costs - Prime cost

= $79,700 - $37,300

= $42,400

Therefore, the manufacturing overhead was $42,400.

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