Answer:
Manufacturing overhead= $57,600
Explanation:
<u>To calculate the Conversion costs, we need to use the following formula:</u>
Conversion costs= direct labor + manufacturing overhead
<u>Now, if direct labor is 60% of conversion costs, then:</u>
Conversion costs= direct labor / (1 - 0.4)
Conversion costs= 86,400 / 0.6
Conversion costs= $144,000
<u>Finally, we determine the manufacturing overhead:</u>
Manufacturing overhead= 144,000 - 86,400
Manufacturing overhead= $57,600