Ask Question
29 January, 00:30

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:

+2
Answers (1)
  1. 29 January, 00:43
    0
    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
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “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 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers