Electronics Unlimited uses activity-based costing to allocate all manufacturing conversion costs.Electronics Unlimited produces computer keyboards;each computer keyboard has $8.00 of direct materials,includes 12 parts and requires 1/2 hour of machine time.Additional information follows:

What is the cost of machining per computer keyboard?
A)$0.88
B)$12.00
C)$6.00
D)$3.00

Question

Electronics Unlimited uses activity-based costing to allocate all manufacturing conversion costs.Electronics Unlimited produces computer keyboards;each computer keyboard has $8.00 of direct materials,includes 12 parts and requires 1/2 hour of machine time.Additional information follows:

What is the cost of machining per computer keyboard?

What is the cost of machining per computer keyboard?
A)$0.88 
B)$12.00 
C)$6.00 
D)$3.00

Quizplus · Accepted Answer

The cost of machining per computer keyboard can be calculated by dividing the total machining cost by the total number of keyboards produced. The total machining cost is $300,000, which is the sum of all the costs in the machining activity category. The total number of keyboards produced is 150,000, which is the sum of all the quantities of keyboards produced. Therefore, the cost of machining per computer keyboard is $2.00.

Electronics Unlimited Uses Activity-Based Costing to Allocate All Manufacturing Conversion