Question

Abburi Companys manufacturing overhead is 35% of its total conversion costs. If direct labor is $126,100 and if direct mater
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer :

Option - A, $67,900

Explanation :

Direct labor = $126,100

Manufacturing overhead = 0.35 x Conversion cost

Conversion cost = Direct labor + Manufacturing overhead

Conversion cost = $126,100 + Manufacturing overhead

Conversion cost = $126,100 + 0.35 x Conversion cost

Conversion cost - 0.35 x Conversion cost = $126,100

0.65 x Conversion cost = $126,100

Conversion cost = $126,100 / 0.65

Conversion cost = $194,000

Now,

Manufacturing overhead = 0.35 x Conversion cost

Manufacturing overhead = 0.35 x $194,000

Manufacturing overhead = $67,900

Add a comment
Know the answer?
Add Answer to:
Abburi Company's manufacturing overhead is 35% of its total conversion costs. If direct labor is $126,100...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT