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a direct material + direct labour
b direct labor + factory over head
c direct labour + variable overhead
d direct labour + fixed over head
Direct labour + factory overhead= conversion cost.....
Conversion cost are the combination of direct labor costs plus manufacturing overhead costs.
b direct labor + factory over head
Direct Labor + Factory overhead (FOH)= Conversion cost
It is the manufacturing or production cost need to convert Raw material into product
direct material + direct labour + factory overhead
