Direct labor for a company was $132,000; manufacturing overhead was $275,000; and direct materials were $253,000.Conversion costs would total:
A)$385,000.
B)$660,000.
C)$407,000.
D)$528,000.

Question

Quizplus · Accepted Answer

Conversion costs are the sum of direct labor and manufacturing overhead. 
Conversion Costs = Direct Labor + Manufacturing Overhead 
Conversion Costs = $132,000 + $275,000 
Conversion Costs = $407,000

Direct Labor for a Company Was $132,000; Manufacturing Overhead Was