Question

Abburi Company's manufacturing overhead is 40% of its total conversion costs. It direct laboris $63,600 and if direct materials are $23,800,the manufacturing overhead is:_________

Answer 1

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

Find out more about manufacturing overhead on:brainly.com/question/20815795

#SPJ1