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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

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Lelia Lubowitz
Lelia LubowitzLv2
28 Sep 2019

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