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13 February, 11:29

A company manufactures mirrors. Last month's costs were:Direct materials $86,000Direct labor 149,000Manufacturing Overhead 159,000What were the conversion costs for the month?

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  1. 13 February, 12:35
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    Conversion Cost = $308,000

    Explanation:

    Giving the following information:

    Last month's costs were:

    Direct materials $86,000

    Direct labor 149,000

    Manufacturing Overhead 159,000

    To calculate the conversion costs, we need to use the following formula:

    Conversion cost = direct labor + allocated overhead

    CC = 149,000 + 159,000 = $308,000
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