During the month of May, direct labor cost totaled $10,000 and direct labor cost was 40% of prime cost. If total manufacturing costs during May were $86,000, the manufacturing overhead was:

$61,000

Explanation:

Given that

Direct labor = $10,000

Manufacturing overhead = $86,000

Given percentage = 40%

The computation of the manufacturing overhead cost is shown below:

Prime cost = $10,000 × 100 ÷ 40 = $25,000

Manufacturing cost = $86,000

And we know that

Manufacturing overhead = Manufacturing cost - Prime cost

= $86,000 - $25,000

So, manufacturing overhead is $61,000

answer; (inseparability);

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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