Sweet Lu Industries applies manufacturing overhead to its products on the basis of 50% of direct material cost.If a job had $35,000 of manufacturing overhead applied to it during May,the direct materials assigned to the job was:

Question

Quizplus · Accepted Answer

The manufacturing overhead is applied at 50% of the direct material cost. If $35,000 is the overhead, then the direct material cost is $35,000 / 0.5 = $70,000.

Sweet Lu Industries Applies Manufacturing Overhead to Its Products on the Basis