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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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facundobuzzetti

Answer:

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