Question

Abe Company produces a product with the following per-unit costs:

Direct Materials: $15
Direct labor: 9
Manufacturing Overhead: 17
Conversion cost per unit is..................

Answer 1

The conversion cost per unit is $26.

Step-by-step explanation:

The conversion cost per unit is the sum of the direct labor cost and the manufacturing overhead cost. In this case, the direct labor cost is $9 per unit and the manufacturing overhead cost is $17 per unit. Therefore, the conversion cost per unit is $9 + $17 = $26.