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Conversion costs are a.direct materials and factory overhead b.direct materials and indirect labor c.direct materials and direct labor d.factory overhead and direct labor

User Tim Trout
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Answer:

d.factory overhead and direct labor

Step-by-step explanation:

The conversion cost is a mix of the direct labor and the factory overhead or the manufacturing overhead

In mathematically,

Conversion cost = Direct labor + factory overhead

It is that cost which includes direct labor cost and manufacturing overhead cost only. It means that it excludes the direct material cost. Like - depreciation, factory rent, factory supplies, etc

User Roberto Navarro
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