SargentMud Corporation makes custom mud sculptures and is very labor intensive so they apply overhead cost to jobs on the basis of 80% of direct labor cost. If Job MUD210 shows $20,480 of manufacturing overhead cost applied, how much was the direct labor cost on the job?
overhead cost =80%*direct labor cost
direct labor cost=(20480/0.8)
which is equal to
=$25600
SargentMud Corporation makes custom mud sculptures and is very labor intensive so they apply overhead cost...
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