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my question is that if there is direct material of 23% , direct labor of 12% , direct expense of 7% , and production over head of 58% .
what will be the total direct cost if production overhead of the company is $124,700.
Please don’t simply set me a test question and expect me to provide an answer.
You must have an answer in the same book in which you found the question and so in future you must ask about whatever it is in the answer that you are not clear about. Then I will explain.If the production overheads are $124,700, then the total costs must be 124,700/58% = $215,000.
Therefore the total direct cost will be 42% x $215,000.
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