Question

Job 590 has a total cost of $ 29 comma 200. It has been charged manufacturing overhead costs of $ 7 comma 000. The rate is 75​% of direct labor. What was the amount of direct materials charged to the​ job?

Answer 1

Direct material= $12,867

Step-by-step explanation:

Giving the following information:

Job 590:

Total cost= $29,200

Manufacturing overhead= $7,000

The rate is 75​% of direct labor.

First, we need to calculate the direct labor cost:

Direct labor= allocated overhead/0.75

Direct labor= 7,000/0.75= $9,333

Now, we can calculate the direct material cost:

Total cost= direct material + direct labor + allocated overhead

29,200= direct material + 9,333 + 7,000

direct material= $12,867