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 assembling per cuckoo clock?
A) $4.50
B) $12.50
C) $5.00
D) $3.00

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 assembling per cuckoo clock?
A) $4.50 
B) $12.50 
C) $5.00 
D) $3.00

Quizplus · Accepted Answer

C) 10 parts × $.50 per part = $5.00

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