Abbott Company incurred the following costs during the year: utilities (60% factory), $5,000; insurance (75% factory), $4,000;

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Question:

Abbott Company incurred the following costs during the year: utilities (60% factory), $5,000; insurance (75% factory), $4,000; direct materials, $20,000; indirect materials, $3,000; direct labor, $30,000; and indirect labor, $5,000. What is the amount of conversion costs incurred during the year?

$44,000

$36.000

$77,000

None of these

$94,000