Business, 17.02.2020 23:34 highschoolboy

Telecom uses activity-based costing to allocate all manufacturing conversion costs. Telecom produces cellular telephones; each phone has $40.00 of direct materials, includes 20 parts and requires 5 hours of machine time. Additional information follows:

Activity Allocation Base Cost Allocation Rate
Materials handling Number of parts $0.50 per part
Machining Machine hours $14.00 per machine hour
Assembling Number of parts $1.00 per part
Packaging Number of finished units $2.00 per finished unit

What is the cost of machining per phone?

a. $30.00
b. $42.00
c. $6.00
d. $15.00

Answers: 2

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Telecom uses activity-based costing to allocate all manufacturing conversion costs. Telecom produces...

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