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Commerce · Q310

Costing

Graduate and Post Graduate · Commerce · question 310

Q310

Direct manufacturing labour costs is 40000 and manufacturing overhead cost is 7000, then conversion cost would be

A.
$47,000
Answer
B.
$33,000
C.
$57,000
D.
$18,000

Answer: Option A

Solution

Answer: Option A
Solution:
Conversion cost = Direct manufacturing labour costs + Manufacturing overhead cost
= 7000 = $47,000