Question

Craigmont Company's direct materials costs are $3,400,000, its direct labor costs total $7,360,000, and its factory overhead costs total $5,360,000. Its conversion costs total:__________
a) $10,760,000.
b) $8,760,000.
c) $12,720,000.
d) $5,400,000.
e) $16,120,000.

Answer 1

Answer:

c) $12,720,000.

Explanation:

Conversion Costs = Direct Labor Costs + Factory Overheads

                               = $7,360,000 + $5,360,000

                               = $12,720,000

Thus,

Craigmont Company's conversion costs total is $12,720,000.