sargent corporation applies overhead cost to jobs on the basis of 80 percent of direct labor cost. if job…

sargent corporation applies overhead cost to jobs on the basis of 80 percent of direct labor cost. if job 210 shows $10,000 of manufacturing overhead cost applied, how much was the direct labor cost on the job? $12,500 $10,000 $8,000 $11,000

sargent corporation applies overhead cost to jobs on the basis of 80 percent of direct labor cost. if job 210 shows $10,000 of manufacturing overhead cost applied, how much was the direct labor cost on the job? $12,500 $10,000 $8,000 $11,000

Answer

Explanation:

Step1: Set up the equation

Let (x) be the direct labor cost. The overhead cost is (80%) (or (0.8)) of the direct labor cost. So, (0.8x = 10000).

Step2: Solve for (x)

Divide both sides of the equation by (0.8): (x=\frac{10000}{0.8}). [x = 12500]

Answer:

(12500) (So the first option ($12,500) is correct)