Use the information below to answer the following question(s):
Pittinger Company manufactures cuckoo clocks and uses an activity-based costing system. Each cuckoo clock consists of 10 separate parts totaling $120 in direct materials, and requires 2.0 hours of machine time to produce. Additional information follows:

-What is the cost of machining per cuckoo clock?
A) $5.00
B) $3.00
C) $10.50
D) $25.00

Question

Use the information below to answer the following question(s):
Pittinger Company manufactures cuckoo clocks and uses an activity-based costing system. Each cuckoo clock consists of 10 separate parts totaling $120 in direct materials, and requires 2.0 hours of machine time to produce. Additional information follows:
 
-What is the cost of machining per cuckoo clock?
A) $5.00 
B) $3.00 
C) $10.50 
D) $25.00

Quizplus · Accepted Answer

A) 2 machine hours × $2.50 = $5.00

Use the Information Below to Answer the Following Question(s)