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14 June, 04:09

During the month of April, direct labor cost totaled $15,000 and direct labor cost was 30% of prime cost. If total manufacturing costs during April were $79,000, the manufacturing overhead was: Multiple Choice $35,000 $29,000 $50,000 $129,000

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  1. 14 June, 04:24
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    The correct answer is B.

    Explanation:

    Giving the following information:

    During April, direct labor cost totaled $15,000 and direct labor cost was 30% of prime cost. If total manufacturing costs during April were $79,000.

    Manufacturing cost = direct material + direct labor + manufacturing overhead

    Prime cost = direct material + direct labor

    50,000 = DM + 15,000

    Direct material = 35,000

    79,000 = 35,000 + 15,000 + manufacturing overhead

    manufacturing overhead = 29,000
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