Answer:
$38,970= allocated overhead
Explanation:
Giving the following information:
direct labor cost totaled $13,230
direct labor cost was 45% of prime cost.
The total manufacturing costs in May were $81,600.
The prime cost is calculated summing the direct material and direct labor cost.
<u>First, we need to calculate the direct material cost:</u>
Direct material= (13,230*100)/45= 29,400
Prime costs= 29,400 + 13,230= 42,630
Now, we can calculate the allocated overhead:
total manufacturing costs= direct materials + direct labor + allocated manufacturing overhead
81,600= 42,630 + allocated overhead
38,970= allocated overhead
