answersLogoWhite

0

Yes conversion cost is sum of direct labor and overheads which required to run the process of production of units.

User Avatar

Wiki User

10y ago

Still curious? Ask our experts.

Chat with our AI personalities

CoachCoach
Success isn't just about winning—it's about vision, patience, and playing the long game.
Chat with Coach
RossRoss
Every question is just a happy little opportunity.
Chat with Ross
BeauBeau
You're doing better than you think!
Chat with Beau

Add your answer:

Earn +20 pts
Q: Is Conversion cost is the sum of direct labor and manufacturing overhead?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Math & Arithmetic

Is Direct material cost combined with manufacturing overhead cost is known as conversion cost?

false, direct labor and manufacturing overhead = conversion cost


Abel companys manufacturing overhead is 20 percent of its total conversion costs If direct labor is 38000 and if direct material are 47000 the manufacturing overhead is?

Well, honey, if manufacturing overhead is 20% of total conversion costs, and direct labor is $38,000 and direct materials are $47,000, then total conversion costs would be $38,000 + $47,000 = $85,000. So, if manufacturing overhead is 20% of that, it would be 0.20 x $85,000 = $17,000. So, the manufacturing overhead would be $17,000.


What is the direct labor cost if a company's direct labor is 40 percent of its conversion cost and the manufacturing overhead cost for the last period was 60000 and the direct materials cost was 30000?

To calculate the direct labor cost, we first need to determine the total conversion cost. Since direct labor is 40% of the conversion cost, indirect labor must be 60%. Therefore, the total conversion cost is 60000 / 0.6 = 100000. Since direct labor is 40% of the conversion cost, direct labor cost is 100000 * 0.4 = 40000. So, the direct labor cost is $40,000.


How do you compute predetermined overhead rate as a percentage of direct labor costs and direct labor hours?

Predetermined overhead rate based on direct labor cost = Budgeted overhead cost / direct labor cost / 100 Predetermined overhead rate based on direct labor cost = budgeted overhead cost / direct labor hours.


How do I compute predetermined overhead rate as a percentage of direct labor costs?

Predetermined overhead rate = Est. total Manuf. Overhead Cost / Est. total amt of allocation base In this case, allocation base would be direct labor (as opposed to machine labor). Hope this helps