A company's prime costs total $4,563,000 and its conversion costs total $5,570,000. If direct materials costs are $2,077,000, calculate the overhead costs:

overhead cost will be equal to = $3,084,000

Explanation:

given,

total company's prime cost = $4,563,000

total conversion cost = $5,570,000

direct material cost = $2,077,000

hence,

direct labor = prime cost - direct material cost

= $4,563,000 - $2,077,000

= $2,486,000

we know,

overhead costs = conversion cost - direct labor cost

= $5,570,000 - $2,486,000

= $3,084,000

hence, overhead cost will be equal to = $3,084,000