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28 Sep 2019
Pittinger Company manufactures cuckoo clocks and uses anactivity-based costing system to allocate all manufacturingconversion costs. Each cuckoo clock consists of 10 separate partstotaling $120 in direct materials, and requires 2.0 hours ofmachine time to produce. Additional information follows:
Activity
Allocation Base
Cost Allocation Rate
Materials handling
Number of parts
$1.25 per part
Machining
Machine hours
$2.50 per machine hour
Assembling
Number of parts
$0.50 per part
Packaging
Number of finished units
$1.50 per finished unit
What is the total manufacturing cost per cuckoo clock?
a. $144.00 --correct answer but guessed it during a quiz. Canyou please tell me how to solve it?
b. $142.50
c. $24.00
d. $153.00
Pittinger Company manufactures cuckoo clocks and uses anactivity-based costing system to allocate all manufacturingconversion costs. Each cuckoo clock consists of 10 separate partstotaling $120 in direct materials, and requires 2.0 hours ofmachine time to produce. Additional information follows:
Activity | Allocation Base | Cost Allocation Rate |
Materials handling | Number of parts | $1.25 per part |
Machining | Machine hours | $2.50 per machine hour |
Assembling | Number of parts | $0.50 per part |
Packaging | Number of finished units | $1.50 per finished unit |
What is the total manufacturing cost per cuckoo clock?
a. $144.00 --correct answer but guessed it during a quiz. Canyou please tell me how to solve it?
b. $142.50
c. $24.00
d. $153.00
Lelia LubowitzLv2
28 Sep 2019