In June Direct Labour Was 60% Percent of Conversion Cost

question 43

Multiple Choice

In June direct labour was 60% percent of conversion cost. If the manufacturing overhead cost for the month was £36,000 and the direct materials cost was £22,000, the direct labour cost was

• A)£33,000.
• B)£14,667.
• C)£24,000.
• D)£54,000.

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Definitions:

Dropping Product

The decision made by a company to discontinue producing and selling a specific product due to factors like poor sales, strategic realignment, or cost inefficiency.

Financial Advantage

Refers to the benefits gained in financial terms, often seen as an edge over competitors or a favorable position in the market.

Special Order

A one-time customer order often involving a large quantity and possibly requiring adjustments to standard pricing or production processes.

Variable Manufacturing Cost

Costs that vary in direct proportion to changes in production volume, such as raw materials and direct labor.