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. The total conversion cost is
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 applied factory overhead. Here, direct labor is $84,000 and applied factory overhead is $45,500, totaling $129,500.

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