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Sargent Corporation applies overhead cost to jobs on the basis of 70% of direct labor cost. If Job 210 shows $10,500 of manufacturing overhead cost applied, how much was the direct labor cost on the job?

Respuesta :

TomShelby

Answer:

labor cost = 15,000

Explanation:

We are going to use the formula for applied overhead and solve for the cost driver, which in this case is labor cost.

[tex]labor\: cost \times rate = applied \: overhead \\applied \: overhead \div rate = labor\: cost[/tex]

labor cost * 0.70 = 10,500

10,500/0.70 = labor cost

labor cost = 15,000

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