labor cost $12,000 and Direct labor is 30% of prime cost. Manufacture costs were 86000, the manufacturing overhead =? why is it $46,000
labor cost $12,000 and Direct labor is 30% of prime cost.
why is it $46,000
Prime Cost : Prime Cost is total direct Cost of production including raw material, direct labour and direct expenses.
Manufacturing Overheads : Sum of all indirect cost incurred while manufacturing a product.
Direct Material : ----
Direct Labour : ----
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Prime Cost : ----
Add: Manufacturing Overheads: ----
----------------
Manufacturing Cost : ---
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Or we can say , Manufacturing Overheads = Manufacturing Cost - Prime Cost
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