Cost Classification as Manufacturing and Non-manufacturing: Learning objectives of this article: Define and explain manufacturing and non-manufacturing costs. What is the difference between manufacturing and non-manufacturing costs costs? Identify and give examples of each of the three basic manufacturing cost categories. Manufacturing firms are
Manufacturing Overhead Cost
Procedures for establishing and using standard factory overhead rates are similar to the methods of dealing with the estimated direct and indirect factory overhead and its application to jobs and products.
Conversion Cost Definition: Conversion cost is equal to direct labor cost plus manufacturing overhead cost. In equation form: Conversion Cost = Direct Labor Cost + Manufacturing Overhead Cost Recommended Books ! Or Download E accounting book in MS-word format for just 20 $ -