The combined costs of direct labor and factory overhead per equivalent unit used by many businesses with process operations is called:
A)Physical cost per equivalent unit
B)Overhead cost per equivalent unit
C)Combined cost per equivalent unit
D)Conversion cost per equivalent unit
E)Finished cost per equivalent unit

Question

Quizplus · Accepted Answer

The combined cost of direct labor and factory overhead is known as conversion cost. This cost is incurred to convert raw materials into a finished product. It is commonly used in process costing to determine the cost per equivalent unit.

The Combined Costs of Direct Labor and Factory Overhead Per