The direct manufacturing labor costs is $40000 and manufacturing overhead cost is $7000, then conversion cost would be ____________?
Correct answer: A. $47,000
- A. $47,000
- B. $33,000
- C. $57,000
- D. $18,000
Explanation
Conversion cost is calculated as direct manufacturing labor plus manufacturing overhead: $40,000 + $7,000 = $47,000. The other figures do not follow this formula.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
The supplies, plant maintenance, plant rent, plant insurance and cleaning labor come under the type of costs called ____________?
In cost terms, the direct manufacturing labor cost is included in ___________?
The direct manufacturing labor costs is added into manufacturing overhead cost to calculate ___________?
All the costs, which are assigned to manufactured products for specific calculations are classified as ___________?
The costs which are considered as expenses in the accounting period are also known as ____________?
The period cost, which consists the income statement of manufacturing companies belong to ____________?