In the manufacture of 10,000 units of a product, direct materials cost incurred was $165,000, direct labor cost incurred was $105,000, and applied factory overhead was $53,000. The total conversion cost is

$158,000

Explanation:

During the manufacture of 10,000 units of a products, the direct costs incurred was $165,000

The direct labour costs incurred was $105,000

The applied factory overhead was $53,000

Therefore, the total conversion cost can be calculated as follows

Total conversion costs= Direct labour+ Factory overhead

= $105,000+$53,000

= $158,000

Hence the total conversion cost is $158,000

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