To find the manufacturing overhead, we first need to find the prime cost.
Given:
Direct labor cost = RM13,000
Direct labor cost = 20% of prime cost
Let x be the prime cost.
Direct labor cost = 0.20 * x
RM13,000 = 0.20x
x = RM13,000 / 0.20
x = RM65,000
Now, we can find the manufacturing overhead:
Total manufacturing costs = Direct materials + Direct labor + Manufacturing overhead
RM88,000 = Direct materials + RM13,000 + Manufacturing overhead
Manufacturing overhead = RM88,000 - RM13,000
Manufacturing overhead = RM75,000
Therefore, the manufacturing overhead for the month of August was RM75,000.
QUESTION 3
During the month of August, direct labor cost totaled RM13,000 and direct labor cost was 20% of prime cost. If total manufacturing costs during August were RM88,000, the manufacturing overhead was: (4 marks)
1 answer