The cell conversion cost rate includes which of the following?

A) only factory overhead
B) only direct labor and direct materials
C) direct labor, direct materials, and factory overhead
D) only direct labor and factory overhead

Factory Overhead

All indirect costs associated with manufacturing, such as utilities, maintenance, and salaries of supervisors, not directly tied to a specific product.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are an integral part of the finished product.