Answer:
Manufacturing overhead= $39,500
Explanation:
Giving the following information:
Direct labor= $15,000
Direct labor cost was 40% of prime cost.
Total manufacturing costs= $77,000
<u>First, we need to calculate the prime cost:</u>
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Prime cost= direct material + direct labor
Prime cost= 15,000/0.4= 37,500
<u>Now, we can determine the manufacturing overhead:</u>
Manufacturing overhead= total manufacturing costs - prime costs
Manufacturing overhead= 77,000 - 37,500
Manufacturing overhead= $39,500
