If the costs for direct labour, factory overhead and direct material were $873,600,
$109,200 and $53,200 respectively for 28,000 equivalent units of production, the conversion cost per equivalent unit was $35.10.

Conversion Cost

The combined cost of direct labour and manufacturing overhead required to convert raw materials into finished goods.

Direct Labour

Employees who play a fundamental role in the assembly or creation of a company's products, contributing directly to the output.

Factory Overhead

Costs related to operating a manufacturing facility not directly tied to a specific product, including maintenance, utilities, and equipment depreciation.