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Commerce · Q303

Costing

Graduate and Post Graduate · Commerce · question 303

Q303

Conversion cost is subtracted from manufacturing overhead cost is to calculate the

A.
manufacturing labour costs
B.
direct labour costs
C.
direct manufacturing labour costs
Answer
D.
indirect manufacturing labour costs

Answer: Option C

Solution

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