Beaver Company manufactures coffee tables and uses an activity based costing system to allocate all manufacturing conversion costs. Each coffee tables consists of 20 separate parts totaling $180 in direct materials, and requires 4 hours of machine time to produce. Additional information follows: Activity Materials handling Allocation Base Cost Allocation Rate $1.00 per part $4.40 per machine hour $5.00 per part $5.00 per finished unit Number of parts Machine hours Machining Assembling Packaging Number of parts Number of finished units What is the cost of machining per coffee table? O A. $100.00 O B. $20.00 C. $88.00 O D. $17.60 Click to select your answer.
Beaver Company manufactures coffee tables and uses an activity based costing system to allocate all manufacturing conversion costs. Each coffee tables consists of 20 separate parts totaling $180 in direct materials, and requires 4 hours of machine time to produce. Additional information follows: Activity Materials handling Allocation Base Cost Allocation Rate $1.00 per part $4.40 per machine hour $5.00 per part $5.00 per finished unit Number of parts Machine hours Machining Assembling Packaging Number of parts Number of finished units What is the cost of machining per coffee table? O A. $100.00 O B. $20.00 C. $88.00 O D. $17.60 Click to select your answer.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Beaver Company manufactures coffee tables and uses an activity based costing system to allocate all manufacturing conversion costs. Each coffee tables consists of 20 separate parts totaling $180 in direct
materials, and requires 4 hours of machine time to produce. Additional information follows:
Activity
Materials handling
Allocation Base
Cost Allocation Rate
$1.00 per part
$4.40 per machine hour
$5.00 per part
$5.00 per finished unit
Number of parts
Machine hours
Machining
Assembling
Packaging
Number of parts
Number of finished units
What is the cost of machining per coffee table?
O A. $100.00
O B. $20.00
C. $88.00
O D. $17.60
Click to select your answer.
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