In the manufacture of 8,000 units of a product, direct materials cost incurred was $154,600, direct labor cost incurred was $84,000, and applied factory overhead was $45,500. what is the total conversion cost?

Conversion costs are the combination of direct labor costs plus factory overhead costs. Hence, conversion costs exclude the cost of direct materials.

So, here the conversion cost = Direct labor cost + Factory overhead cost

= $ 84,000 + $ 45,500

= $ 129,500

hi there, i would say your answer is:

b. there is a fixed quantity of resources and technology available.

hope that : )

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