In the Manufacture of 10,000 Units of a Product, Direct

question 145

Multiple Choice

In the manufacture of 10,000 units of a product, direct materials cost incurred was $165,000, direct labor cost incurred was $105,000, and applied factory overhead was $53,000. What is the total conversion cost?

• A) $218,000
• B) $158,000
• C) $323,000
• D) $53,000

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Definitions:

Highly Scripted

A term describing activities or processes that are tightly controlled and follow a pre-determined script or plan.

Take Action

The process of behaving or conducting oneself in a way that initiates change or produces results.

Results

The outcomes or outputs achieved from a specific process, activity, or investment, which are measured against predetermined objectives or goals.

Plan Obsessively

The approach of meticulously detailing every aspect of a project or venture to ensure its success.