Question

Direct labor cost per unit for HAK company is R5.500. Tota manufacturing cost
is Rs.1800 Direct material cost is 2 times as large as Direct labor cost, what is
the value of prime cost and conversion cost for HAK company respectively.​

Answer 1

Answer:

Prime Costs vs. Conversion Costs: An Overview

Prime costs and conversion costs are relied upon heavily in the manufacturing sector as a metric to determine efficiency in the production of a specific product. Prime costs are defined as the expenditures directly related to creating finished products, while conversion costs are the expenses incurred when turning raw materials into a product.