The combined costs of direct labor and factory overhead per equivalent unit used by manybusinesses with process operations is called

The combined costs of direct labor and factory overhead per equivalent unit used by many businesses with process operations is called "Conversion Cost".

Here are the steps to understand this:

1. Direct Labor: This is the cost of the work done by those employees who actually make the product on the production line.

2. Factory Overhead: These are all the other costs associated with running the factory that are not direct labor or direct materials. This includes costs like factory rent, utilities, and maintenance.

3. Equivalent Units: This is a measure used in cost accounting to denote the amount of material or labor necessary to complete a good unit of production.

4. Conversion Cost: This is the sum of direct labor and factory overhead costs. It represents the costs that are not directly tied to the materials used in production.

So, in process operations, businesses often look at the conversion cost per equivalent unit to understand how much it costs to transform materials into a finished product.