The Cosmo Corporation manufactures and assembles office chairs. Cosmo uses an activity-based costing system to allocate all manufacturing conversion costs. Each chair consists of 15 separate parts totaling $125 in direct materials, and requires 2.0 hours of machine time to produce. Additional information follows: What is the cost of materials handling per chair?
A)$26.25
B)$7.50
C)$5.50
D)$4.00

Question

The Cosmo Corporation manufactures and assembles office chairs. Cosmo uses an activity-based costing system to allocate all manufacturing conversion costs. Each chair consists of 15 separate parts totaling $125 in direct materials, and requires 2.0 hours of machine time to produce. Additional information follows:  What is the cost of materials handling per chair?
A)$26.25 
B)$7.50 
C)$5.50 
D)$4.00

Quizplus · Accepted Answer

The Answer of The Cosmo Corporation manufactures and assembles office chairs. Cosmo uses an activity-based costing system to allocate all manufacturing conversion costs. Each chair consists of 15 separate parts totaling $125 in direct materials, and requires 2.0 hours of machine time to produce. Additional information follows:  What is the cost of materials handling per chair?
A)$26.25 
B)$7.50 
C)$5.50 
D)$4.00

The Cosmo Corporation Manufactures and Assembles Office Chairs