It direct labor is $63,600 and if direct materials are $23,800,the manufacturing overhead is:$25,440
What are conversion costs of production?
Conversion costs are costs of labor incurred and other related expenses incurred in a bid to transform raw materials to finished goods, the only conversion costs in this case is direct labor, which is $63,600, in other words, the Abburi Company's manufacturing overhead is 40% of direct labor costs
manufacturing overhead=40%*direct labor costs
direct labor costs=$63,600
manufacturing overhead=40%*$63,600
manufacturing overhead=$25,440
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