Direct Labor for a Company Was $132,000; Manufacturing Overhead Was

question 30

Multiple Choice

Direct labor for a company was $132,000; manufacturing overhead was $275,000; and direct materials were $253,000.Conversion costs would total:

• A)$385,000.
• B)$660,000.
• C)$407,000.
• D)$528,000.

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Definitions:

Period Costs

Expenses that are not directly tied to the production process and are expensed in the period they are incurred, such as sales and administrative expenses.

Production Requirements

The specific inputs and conditions needed for the production process to create goods or services.

Direct Labor Cost

The cost of wages paid to workers directly involved in manufacturing a product or providing a service, excluding indirect labor involved in support roles.

Period Cost

Expenses incurred during a specific time frame that are not directly tied to the production process, such as sales, administration, and marketing expenses.