Manufacturing Overheads = 20% of Conversion Cost
Total Conversion Cost = ?
Total Conversion Cost = Direct Labor + Manufacturing Overheads
100% = 80% + 20%
Total Conversion Cost = direct labor * 100/80
Direct labor = 38000
Total Conversion Cost = 38000 * 100/80
Total Conversion Cost = 47500
Manufacturing Cost = Total Conversion Cost - Direct Labor
Manufacturing Cost = 47500 - 38000
Manufactruring Cost = 9500
67000
false, direct labor and manufacturing overhead = conversion cost
Yes conversion cost is sum of direct labor and overheads which required to run the process of production of units.
60000 + 30000 = 90000 = 60% / 60 = 1500 = 1% x 100 = 150000 = 100% X .4 = 60000 The above solution is incorrect. By definition, the conversion cost is the sum of the direct labor cost and the overhead. Therefore, if we assume x is the conversion cost, then x = 0.4x + 60,000. The solution is conversion cost = 100,000. Hence, the direct labor cost = 40,000. Note that the knowing the direct material cost is not necessary for the computation of the labor cost. I am really bad at math so i just have to think you are right on this one
Overhead cost is part of total cost and not different from total cost as formula is as follows: Total cost = material cost + labor cost + overhead cost
Predetermined overhead rate is that overhead rate calculated before start of production to allocate overhead costs to units of products by using some ratio in relation to some other cost like material cost or labor cost or labor hours etc.
false, direct labor and manufacturing overhead = conversion cost
Pricing is based on direct labor and overhead. Materials does not affect pricing. Example: Your customer provides materials used in production.
Formula for prime cost = direct material + direct laborFormula for conversion cost = direct labor + manufacturing overheads
Prime cost basically is the cost of direct labor and cost of direct material; whereas conversion costs is Overhead cost and direct labor cost.
Conversion Cost (CC) = Direct Labour (DL) + Manufacturing Overhead (MO) CC = 35000 + (35000/40)*60 Therefor, M0 = (35000/40)*60 = 52500
No, Conversion cost is the sum of direct labor cost and manufacturing overhead cost.
Total Manufacturing Cost = Direct Material + Direct Labor + Factory Overheads Prime Cost = Direct material + Direct Labor Conversion Cost = Direct Labor + Factory Overhead So yes prime cost and conversion cost is equal to total manufacturing cost
There is a variance.
Yes conversion cost is sum of direct labor and overheads which required to run the process of production of units.
Following is the formula for total costtotal cost = fixed overheads + variable overheads + direct labor + direct material
what is plantwide manufacturing overhead
No. Cost would include the cost of materials. Overhead would not.