Watson's Computer Company uses ABC to account for its manufacturing process.

Watson's Computer Company expects to produce 2,250 computers.Watson's Computer Company also expects to use 13,000 parts and have 20 setups.
The allocation rate for materials handling will be
A)$4.00.
B)$6.80.
C)$23.11.
D)$7.01.

Question

Watson's Computer Company uses ABC to account for its manufacturing process.

Watson's Computer Company expects to produce 2,250 computers.Watson's Computer Company also expects to use 13,000 parts and have 20 setups.
The allocation rate for materials handling will be
A)$4.00. 
B)$6.80. 
C)$23.11. 
D)$7.01.

Quizplus · Accepted Answer

A)$52,000 / 13,000 = $4.00

Watson's Computer Company Uses ABC to Account for Its Manufacturing