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During the month of July, direct labour cost totalled $24,000 and direct labour cost was 30%...

During the month of July, direct labour cost totalled $24,000 and direct labour cost was 30% of prime cost. If total manufacturing costs during June were $105,000, the manufacturing overhead was:

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Expert Solution

Prime cost=Direct materials+Direct labor

24000=30%*prime cost

prime cost=(24000/0.3)

=$80000

Total manufacturing cost=Direct materials+Direct labor+manufacturing overhead

105,000=Prime cost+manufacturing overhead

manufacturing overhead=(105,000-80,000)

=$25000

ekkarill92 answered 2 years ago
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