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  • Aug 30, 2007, 08:22 PM
    crazymomm1
    Managerial accounting
    If your manufacturing overhead is 70% of conversion cost, how do you figure out the manufacturing overhead cost? Please help!
  • Sep 3, 2007, 10:36 AM
    goldielockslk
    Quote:

    Originally Posted by crazymomm1
    If your manufacturing overhead is 70% of conversion cost, how do you figure out the manufacturing overhead cost? Please help!!

    Conversion Costs are your Direct Labor costs+Mfg OH costs. So if OH is 70% of that, simple take the total of the Conversion cost and times it by .7
  • Sep 3, 2007, 07:05 PM
    crazymomm1
    Quote:

    Originally Posted by goldielockslk
    Conversion Costs are your Direct Labor costs+Mfg OH costs. So if OH is 70% of that, simple take the total of the Conversion cost and times it by .7

    So what you mean is I would multiply the labor cost which is 180,000 by .7?

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