Morton Company's manufacturing costs last year were as follows:
Conversion cost was:
$\begin{array}{lrr}
\text { Direct materials } &£300,000\
\text { Direct labour } &400,000\
\text { Manutacturing overhead: } &\
\text {variable. } &80,000\
\text {Fixed } &50,000\
\end{array}$

A)£400,000.
B)£480,000.
C)£530,000.
D)£830,000.

Question

Morton Company's manufacturing costs last year were as follows:
Conversion cost was:
$\begin{array}{lrr}
  \text { Direct materials } &£300,000\
 \text { Direct labour } &400,000\
 \text { Manutacturing overhead: } &\
 \text {variable.  } &80,000\
 \text {Fixed  } &50,000\
\end{array}$

A)£400,000.
B)£480,000.
C)£530,000.
D)£830,000.

Quizplus · Accepted Answer

Conversion cost is the sum of direct labor and manufacturing overhead (both variable and fixed). Therefore, £400,000 (direct labor) + £80,000 (variable overhead) + £50,000 (fixed overhead) = £530,000.

Morton Company's Manufacturing Costs Last Year Were as Follows: Conversion

Morton Company's Manufacturing Costs Last Year Were as Follows:
Conversion