Question

DM 10 Conversion Costs 25 Prime Costs 15 MOH?

DM 10 Conversion Costs 25 Prime Costs 15 MOH?

Homework Answers

Answer #1
Working Notes:
Calculation of Direct labor Cost
Prime Cost = Direct Material Cost + Direct Labor Cost
Direct Labor Cost = Prime Cost - Direct Material Cost
Direct Labor Cost = 15 - 10
Direct Labor Cost = 5
Solution:  
Calculation of Machine overhead cost
Conversion Cost = Direct Labor Cost + Overhead Cost
Overhead Cost = Conversion Cost - Direct Labor Cost
Overhead Cost = 25     -   5
Overhead Cost = 20
Answer = Machine Overhead Cost = 20
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