Question

Craigmont Company's direct materials costs are $3,100,000, its direct labor costs total $7,090,000, and its factory overhead costs total $5,090,000. Its conversion costs total: Multiple Choice $10,190,000. $8,190,000. $12,180,000. $5,100,000. $15,280,000.

Answer 1

conversion costs=$12,180,000

Step-by-step explanation:

so the values we get from the exercise are:

direct materials costs = $3,100,000

direct labor costs total = $7,090,000

actory overhead costs total = $5,090,000

therefore the conversion cost will be gioven by the formula:

conversion costs= direct labor costs+factory overhead

conversion costs=(7,090,000+5,090,000)

conversion costs=$12,180,000