Enter the total direct labor cost and the manufacturing overhead into the calculator to determine the conversion cost.
- Cost of Goods Manufactured Calculator (COGM)
- Manufacturing Overhead Calculator
- Average Variable Cost Formula
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
How to calculate conversion cost?
- 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.
- 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.
- Finally, calculate the conversion cost.
Calculate the conversion cost by adding the direct labor cost to the manufacturing overhead.
A conversion cost is the total amount of cost it takes to bring a manufactured product from a raw material into a completed good.
The best methods for reducing conversion costs involve improving efficiency that reduce both direct labor and manufacturing overhead.
|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|