In the manufacture of 8,000 units of a product, direct materials cost incurred was $154,600, direct labor cost incurred was $84,000, and applied factory overhead was $45,500. What is the total conversion cost?
A) $129,500
B) $154,600
C) $284,100
D) $238,600

Question

Quizplus · Accepted Answer

Conversion costs are the sum of direct labor and factory overhead costs, which in this case is $84,000 + $45,500 = $129,500.

In the Manufacture of 8,000 Units of a Product, Direct