Lily Co. applies the manufacturing overhead based on 130% of the direct labor costs. Lily...

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Accounting

Lily Co. applies the manufacturing overhead based on 130% of the direct labor costs. Lily Co. incurs $245,000 indirect labor costs. Of those, $145,000 of the factory labor was used by the Prepping Department, and the remainder of the factory labor was used by the Cooking Department. What is the amount of manufacturing overhead that was applied to the Cooking Department?

Answer: $130,000

How did they get $130,000? Can you please show me the steps?

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