alleryStart learning →Direct labour Rs 40,000 and factory overhead Rs 25,000. What is the conversion cost?
ARs 15,000
BRs 65,000
CRs 85,000
DRs 40,000
Answer & Solution
Correct answer: B. Rs 65,000
Conversion cost is direct labour plus overhead: 40,000 + 25,000 = Rs 65,000.
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