Answer:
manufacturing overhead= $42,000
Explanation:
Giving the following information:
Direct labor= $9,750 (30% of prime costs)
Total manufacturing costs= $74,500
<u>First, we need to determine the direct material costs. We know that prime costs are the sum of direct labor and direct material.</u>
Prime costs= direct labor / 0.3
Prime costs= 9,750 /0.3
Prime costs= $32,500
Direct material= 32,500 - 9,750
Direct material= $22,750
<u>Now, we can calculate the manufacturing overhead:</u>
Total manufacturing costs= direct labor + direct material + manufacturing overhead
74,500 = 9,750 + 22,750 + manufacturing overhead
manufacturing overhead= $42,000
