Job 2908 requires $12,000 of direct materials,$5,500 of direct labor,500 direct labor hours,and 250 machine hours.It also requires 9 hours of inspection at $40 per hour.Manufacturing overhead is computed at $25 per direct labor hour used and $45 per machine hour used. The total dollars of conversion costs are:

Question

Quizplus · Accepted Answer

Conversion costs include direct labor and manufacturing overhead. Direct labor is $5,500. Manufacturing overhead is calculated as ($25 * 500 direct labor hours) + ($45 * 250 machine hours) = $12,500 + $11,250 = $23,750. Total conversion costs are $5,500 + $23,750 = $29,250.

Job 2908 Requires $12,000 of Direct Materials,$5,500 of Direct Labor,500