Colonial Company manufactures decorative wall clocks and uses activity-based costing.Each clock consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce.Additional information is as follows: What is the cost of assembling per clock?
A)$7.00.
B)$7.50.
C)$35.00.
D)$70.00.
E)$87.50.

Question

Colonial Company manufactures decorative wall clocks and uses activity-based costing.Each clock consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce.Additional information is as follows:  What is the cost of assembling per clock?
A)$7.00. 
B)$7.50. 
C)$35.00. 
D)$70.00. 
E)$87.50.

Quizplus · Accepted Answer

The Answer of Colonial Company manufactures decorative wall clocks and uses activity-based costing.Each clock consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce.Additional information is as follows:  What is the cost of assembling per clock?
A)$7.00. 
B)$7.50. 
C)$35.00. 
D)$70.00. 
E)$87.50.

Colonial Company Manufactures Decorative Wall Clocks and Uses Activity-Based Costing