In September direct labor was 25- of conversion cost- If the manufactu.docx

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In September direct labor was 25% of conversion cost. If the manufacturing overhead for the month was $125,250 and the direct materials cost was $27,000, the direct labor cost was: $27,750 $41,750 $96,750 $11,083 Solution The answer is option 3) $ 96,750 Conversion Costs = Direct Labor + Manufacturing Overheads Since total manufacturing costs has three components: direct material, direct labor and manufacturing overheads, conversion costs may also be calculated using the following formula: Conversion Costs = Total Manufacturing Costs â€“ Direct Material .

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In September direct labor was 25- of conversion cost- If the manufactu.docx

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