The Sit-N-Spin Corporation manufactures and assembles office chairs. Sit-N-Spin uses an activity-based costing system to allocate all manufacturing conversion costs. Each chair consists of 10 separate parts totaling $145 in direct materials, and requires 6.0 hours of machine time to produce. Additional information follows: What is the cost of machining per chair?
A)$18.00
B)$30.00
C)$72.00
D)$28.50

Question

The Sit-N-Spin Corporation manufactures and assembles office chairs. Sit-N-Spin uses an activity-based costing system to allocate all manufacturing conversion costs. Each chair consists of 10 separate parts totaling $145 in direct materials, and requires 6.0 hours of machine time to produce. Additional information follows:  What is the cost of machining per chair?
A)$18.00 
B)$30.00 
C)$72.00 
D)$28.50

Quizplus · Accepted Answer

The Answer of The Sit-N-Spin Corporation manufactures and assembles office chairs. Sit-N-Spin uses an activity-based costing system to allocate all manufacturing conversion costs. Each chair consists of 10 separate parts totaling $145 in direct materials, and requires 6.0 hours of machine time to produce. Additional information follows:  What is the cost of machining per chair?
A)$18.00 
B)$30.00 
C)$72.00 
D)$28.50

The Sit-N-Spin Corporation Manufactures and Assembles Office Chairs