DM 10 Conversion Costs 25 Prime Costs 15 MOH?
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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