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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?
To calculate manufacturing overhead as a percentage of total conversion costs, we first need to determine the total conversion costs. Total conversion costs are the sum of direct labor and manufacturing overhead. Given that direct labor is $38,000 and direct materials are $47,000, we can calculate total conversion costs as follows:
Total Conversion Costs = Direct Labor + Manufacturing Overhead Total Conversion Costs = $38,000 + Manufacturing Overhead
Now, we know that manufacturing overhead is 20% of total conversion costs. Therefore, we can express this relationship as:
Manufacturing Overhead = 0.20 * Total Conversion Costs
Substitute the expression for total conversion costs into the equation to solve for manufacturing overhead:
Manufacturing Overhead = 0.20 * ($38,000 + Manufacturing Overhead)
Solving this equation will give us the manufacturing overhead cost.
What else can I help you with?
Is Direct material cost combined with manufacturing overhead cost is known as conversion cost?
false, direct labor and manufacturing overhead = conversion cost
Is Conversion cost is the sum of direct labor and manufacturing overhead?
Yes conversion cost is sum of direct labor and overheads which required to run the process of production of units.
Is total cost different from overhead cost?
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
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.
Definition of a predetermined overhead rate?
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.
Is Direct material cost combined with manufacturing overhead cost is known as conversion cost?
false, direct labor and manufacturing overhead = conversion cost
Manufacturing overhead combined with direct labor forms prime costs?
Formula for prime cost = direct material + direct laborFormula for conversion cost = direct labor + manufacturing overheads
How prime cost is different from conversion cost and Manufacturing Costs?
Prime cost basically is the cost of direct labor and cost of direct material; whereas conversion costs is Overhead cost and direct labor cost.
Abbey Company's manufacturing overhead is 60 percent of its total conversion costs If direct labor is 35000 and if direct materials are 55000 the manufacturing overhead is?
Conversion Cost (CC) = Direct Labour (DL) + Manufacturing Overhead (MO) CC = 35000 + (35000/40)*60 Therefor, M0 = (35000/40)*60 = 52500
What is conversion costs?
Pricing is based on direct labor and overhead. Materials does not affect pricing. Example: Your customer provides materials used in production.
Is the cost of direct materials classified as a conversion cost?
No, Conversion cost is the sum of direct labor cost and manufacturing overhead cost.
Does prime cost plus conversion cost equal the cost of manufacturing?
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
What if budgeted manufacturing overhead is not equal to applied manufacturing overhead?
There is a variance.
Is Conversion cost is the sum of direct labor and manufacturing overhead?
Yes conversion cost is sum of direct labor and overheads which required to run the process of production of units.
When calculating total cost do you add in variable manufacturing overhead fixed manufacturing overhead or both?
Following is the formula for total costtotal cost = fixed overheads + variable overheads + direct labor + direct material
What would a plantwide manufacturing overhead rate be assigned to?
what is plantwide manufacturing overhead
Is manufacturing overhead same as manufacturing cost?
No. Cost would include the cost of materials. Overhead would not.
