Sargent Corporation applies overhead cost to jobs on the basis of 80% 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?

A) $12,500
B) $11,000
C) $8,000
D) $10,000

Direct Labor Cost

The compensation given to employees directly engaged in manufacturing products or delivering services.

Manufacturing Overhead Cost

Indirect costs related to manufacturing that are not directly tied to a specific product, including utilities and maintenance of equipment.

Overhead Cost

Represents the expenses not directly tied to the production of goods or services, including rent, utilities, and administrative costs.