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Commerce · Q290

Costing

Graduate and Post Graduate · Commerce · question 290

Q290

Conversion cost is 20000 and manufacturing overhead cost is 7000, then direct manufacturing labour cost will be

A.
$27,000
B.
$13,000
Answer
C.
$130,000
D.
$29,500

Answer: Option B

Solution

Answer: Option B
Solution:
Direct manufacturing labour cost = Conversion cost - Manufacturing overhead cost
= 7000 = $13000
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