During the month of September,direct labor cost totaled $11,000 and direct labor cost was 40% of prime cost.If total manufacturing costs during September were $73,000,the manufacturing overhead was:
A)$16,500
B)$27,500
C)$62,000
D)$45,500

Question

Quizplus · Accepted Answer

Direct labor cost = $11,000
Direct labor cost = 0.40 F1F1F1S1F1F1F10 Prime cost
Total manufacturing cost = $73,000
Direct labor cost = 0.40 F1F1F1S1F1F1F10 Prime cost
Prime cost = Direct labor cost F1F1F1S1F1F1F10 0.40
Prime cost = $11,000 F1F1F1S1F1F1F10 0.40 = $27,500
Total manufacturing cost = Prime cost + Manufacturing overhead cost
$73,000 = $27,500 + Manufacturing overhead cost
Manufacturing overhead cost = $45,500

During the Month of September,direct Labor Cost Totaled $11,000 and Direct