ABC Manufacturing uses activity-based costing. Each product consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information is as follows: Acitivity Materials handling Machine operations Assembling Packaging Allocation Base Type your answer.... Number of parts Number of hours Number of parts Number of completed products What is the cost of materials handling per product? Cost Allocation Rate $0.10 $5.22 $0.35 $2.00

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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ABC Manufacturing uses activity-based costing. Each product consists of 20 separate
parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce.
Additional information is as follows:
Acitivity
Materials handling
Machine operations
Assembling
Packaging
Allocation Base
Type your answer....
Number of parts
Number of hours
Number of parts
Number of completed
products
What is the cost of materials handling per product?
Cost Allocation Rate
$0.10
$5.22
$0.35
$2.00
Transcribed Image Text:ABC Manufacturing uses activity-based costing. Each product consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information is as follows: Acitivity Materials handling Machine operations Assembling Packaging Allocation Base Type your answer.... Number of parts Number of hours Number of parts Number of completed products What is the cost of materials handling per product? Cost Allocation Rate $0.10 $5.22 $0.35 $2.00
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