Activity Cost Driver Chosen as Allocation Base Conversion Cost Per Unit of Allocation Base Materials handling Number of parts $1.00 Machining Machine hours 60.00 Packaging Number of finished units 2.00
Activity Cost Driver Chosen as Allocation Base Conversion Cost Per Unit of Allocation Base Materials handling Number of parts $1.00 Machining Machine hours 60.00 Packaging Number of finished units 2.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
|
Activity |
Cost Driver Chosen as Allocation Base |
Conversion Cost Per Unit of Allocation Base |
| Materials handling | Number of parts | $1.00 |
| Machining | Machine hours | 60.00 |
| Packaging | Number of finished units | 2.00 |
Each windsock requires three parts and spends five minutes in the machining department. The total cost of direct materials and direct labor is $3.50 per windsock. Gale produces 20,000 windsocks each year and sells them at 140% of cost.
The selling price per windsock is:
Question 8 options:
|
|
$13.50. |
|
|
$18.90. |
|
|
$16.10. |
|
|
$88.20. |
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