During the month of September direct labor cost totaled 1920

During the month of September, direct labor cost totaled $19,200 and direct labor cost was 60% of prime cost. If total manufacturing costs during September were $82,800, the manufacturing overhead was: O $72,600 O $21,800 O $32.000 O s50,800

Solution

Prime cost=Direct materials+Direct labor

Hence prime cost=($19200/0.6)=$32000

Hence total manufacturing cost=Direct materials+Direct labor+Manufacturing overhead

Hence

Manufacturing overhead=(82800-32000)

which is equal to

=$50800.