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Commerce · Q316

Costing

Graduate and Post Graduate · Commerce · question 316

Q316

If conversion cost is 25000 and direct manufacturing labour cost is 17000, then manufacturing overhead cost would be

A.
$14,700
B.
$68,000
C.
$8,000
Answer
D.
$42,000

Answer: Option C

Solution

Answer: Option C
Solution:
Manufacturing overhead cost = Conversion cost - Direct manufacturing labour cost
= 17000 = $8,000