Finished goods inventory is $197,000. If overhead applied to these goods is $72,000, and the overhead rate is 150% of direct lab or, how much direct materials cost was incurred in producing the inventory
1 answer:
Answer:
77,000
Step-by-step explanation:
If 72,000 is 150% of direct labor, then direct labor is 48,000 (72000/1.5)
direct labor 48000
overhead. 72000
total. 120,000
total costs: 197,000
less total above: 120,000
=material costs. 77,000
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