During the month of September, direct labor cost totaled $11,000 and direct labor cost was 40% of prime cost. If total manufacturing costs during September were $73,000, the manufacturing overhead was:

(A) $16,500

(B) $27,500

(C) $62,000

(D) $45,500

Question

Business

Guerra

29 November, 02:21

During the month of September, direct labor cost totaled $11,000 and direct labor cost was 40% of prime cost. If total manufacturing costs during September were $73,000, the manufacturing overhead was:

(A) $16,500

(B) $27,500

(C) $62,000

(D) $45,500

+3

Answers (1)

Know the Answer?

Carey · Answer 1

The correct answer is D: Manufacturing overhead = $45500

Explanation:

Giving the following information, we need to calculate the amount of manufacturing head.

Direct labor = $11000

Direct labor is 40% of prime costs

Total manufactured cost is = $73000

First, we need to calculate the direct material:

Prime cost = direct material + direct labor

If direct labor is 40% of prime costs, then:

Direct material = (11000*60/40=16500

Now, the manufactured cost formula is:

Manufactured cost = direct material + direct labor + manufacturing overhead

By rearranging the formula:

Manufacturing overhead = Manufactured costs - direct material - direct labor = 73000 - 16500-11000=$45500

During the month of September, direct labor cost totaled $11,000 and direct labor cost was 40% of prime cost. If total manufacturing costs during September were $73,000, the manufacturing overhead was:(A) $16,500(B) $27,500(C) $62,000(D) $45,500

During the month of September, direct labor cost totaled $11,000 and direct labor cost was 40% of prime cost. If total manufacturing costs during September were $73,000, the manufacturing overhead was:

(A) $16,500

(B) $27,500

(C) $62,000

(D) $45,500