Homework SourseM23 Computing Applied Manufacturing Overhead and Conversion
M2-3 Computing Applied Manufacturing Overhead and Conversion Cost [Lo 2-3] and a total manufacturing cost of $900. Overhead is applied to jobs at a rate of 200 percent of direct labor cost Use the relationships ar Prime Cost ![M2-3 Computing Applied Manufacturing Overhead and Conversion Cost [Lo 2-3] and a total manufacturing cost of $900. Overhead is applied to jobs at a rate of 200](/WebImages/9/m23-computing-applied-manufacturing-overhead-and-conversion-997690-1761513612-0.webp "M2-3 Computing Applied Manufacturing Overhead and Conversion Cost [Lo 2-3] and a total manufacturing cost of $900. Overhead is applied to jobs at a rate of 200")
Solution
a Conversion cost = 900-300 = $600 b Direct labor cost = 600/300%= $200 c Manufacturing overhead cost = 600-200 = $400 d Prime cost = 300+200 = $500