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Homework answers / question archive / During the month of May, direct labor cost totaled $10,000 and direct labor cost was 40% of prime cost
During the month of May, direct labor cost totaled $10,000 and direct labor cost was 40% of prime cost. If total manufacturing costs during May were $86,000, the manufacturing overhead was?
Computation of Manufacturing Overhead:
Manufacturing Overhead = Manufacturing Cost - Prime Cost
Here,
Manufacturing Cost = 86000
Prime Cost = $10,000/40% = $25,000
Manufacturing Overhead = $86,000-$25,000 = $61,000
