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22 July, 22:44

A company's prime costs total $4,563,000 and its conversion costs total $5,570,000. If direct materials costs are $2,077,000, calculate the overhead costs:

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  1. 23 July, 02:25
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    overhead cost will be equal to = $3,084,000

    Explanation:

    given,

    total company's prime cost = $4,563,000

    total conversion cost = $5,570,000

    direct material cost = $2,077,000

    hence,

    direct labor = prime cost - direct material cost

    = $4,563,000 - $2,077,000

    = $2,486,000

    we know,

    overhead costs = conversion cost - direct labor cost

    = $5,570,000 - $2,486,000

    = $3,084,000

    hence, overhead cost will be equal to = $3,084,000
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