Question

In the manufacture of 9,600 units of a product, direct materials cost incurred was $174,800, direct labor cost incurred was $113,100, and applied factory overhead was $42,300. What is the total conversion cost? a. $155,400 b. $174,800 c. $42,300 d. $330,200

Answer 1

a. $155,400

Step-by-step explanation:

The computation of the conversion cost is shown below:

= Direct labor cost incurred + Applied factory overhead

= $113,100 + $42,300

= $155,400

The conversion cost is a combination of the direct labor cost incurred and the applied factory overhead.

All other information which is given is not relevant. Hence, ignored it