Question

Craigmont Company's direct materials costs are $3,700,000, its direct labor costs total $7,630,000, and its factory overhead costs total $5,630,000. Its conversion costs total:

Answer 1

$13,260,000

Step-by-step explanation:

Craigmont's company has a direct material cost of $3,700,000

Its direct labor cost is $7,630,000

Its factory overhead cost is $5,630,000

Therefore, the conversion costs can be calculated as follows

Conversion costs= Direct labor+Factory overhead

= $7,630,000+$5,630,000

= $13,260,000

Hence the conversion costs total is $13,260,000