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 packaging is
A)$4.00.
B)$13.33.
C)$6.80.
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 packaging is
A)$4.00. 
B)$13.33. 
C)$6.80. 
D)$7.01.

Quizplus · Accepted Answer

C)$15,300 / 2,250 units = $6.80

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