Q313
Conversion cost is subtracted from direct manufacturing labour cost is to calculate the
A.
direct overheads
B.
overhead costs
C.
factory overhead
D.
manufacturing overhead cost
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Conversion cost is subtracted from direct manufacturing labour cost is to calculate the manufacturing overhead cost. Conversion costs is a term used in cost accounting that represents the combination of direct labor costs and manufacturing overhead costs.