Question

The following information is for S&P Enterprises for the month of July: Direct materials $76,000 Direct labor $40,000 Variable manufacturing overhead $25,000 Fixed manufacturing overhead $30,000 Variable selling expense $12,000 Fixed selling expense $15,000 Variable administrative expense $6,000 Fixed administrative expense $18,000 Total conversion cost for the month of July was:_______________.

Answer 1

Answer:

Conversion costs= $95,000

Explanation:

Giving the following information:

Direct labor $40,000

Variable manufacturing overhead $25,000

Fixed manufacturing overhead $30,000

The conversion costs are the sum of direct labor and total manufacturing overhead.

Conversion costs= 40,000 + (25,000 + 30,000)

Conversion costs= $95,000