Conversion Cost Calculator

Enter the total direct labor cost and the manufacturing overhead into the calculator to determine the conversion cost.

Conversion Cost Formula

The following formula is used to calculate a conversion cost.

CC = DL + MO

  • Where CC is the conversion cost ($)
  • DL is the direct labor cost ($)
  • MO is the manufacturing overhead

Example

How to calculate conversion cost?

  1. First, determine the direct labor cost.

    This will be the cost of any labor that was directly involved in the process of manufacturing the good.

  2. Next, determine the total manufacturing overhead.

    The manufacturing overhead will be the total overhead cost required for the manufacturing process to occur and the good to be produced.

  3. Finally, calculate the conversion cost.

    Calculate the conversion cost by adding the direct labor cost to the manufacturing overhead.

FAQ

What is a conversion cost?

A conversion cost is the total amount of cost it takes to bring a manufactured product from a raw material into a completed good.

How do you reduce conversion costs?

The best methods for reducing conversion costs involve improving efficiency that reduce both direct labor and manufacturing overhead.

conversion cost calculator
conversion cost formula

Related Terms

conversion cost calculator
conversion cost formula
how to calculate conversion cost
total conversion cost formula
cost per conversion formula
how to find conversion cost
conversion cost per unit
cost per conversion calculator
prime cost and conversion cost formula
conversion cost per unit formula
how to calculate total conversion cost
how to compute conversion costs
conversion cost equation
conversion cost formula in cost accounting
compute conversion costs
corrugated box conversion cost
how to find total conversion cost
conversion cost formula accounting
how to calculate conversion cost per equivalent unit
how to calculate conversion cost per unit
how do you calculate conversion cost
unit prices with unit conversions
unit conversion cost
conversion cost formula managerial accounting
food price converter
unit prices with unit conversions calculator
price per gallon to price per liter converter
adwords cost per conversion formula
how to find conversion cost per unit
how to calculate the conversion cost
cost of conversion formula