Use the information below to answer the following question(s):
Pittinger Company manufactures cuckoo clocks and uses an activity-based costing system. Each cuckoo clock consists of 10 separate parts totaling $120 in direct materials, and requires 2.0 hours of machine time to produce. Additional information follows:

-What is the cost of materials handling per cuckoo clock?
A) $3.00
B) $5.00
C) $4.50
D) $12.50

Question

Use the information below to answer the following question(s):
Pittinger Company manufactures cuckoo clocks and uses an activity-based costing system. Each cuckoo clock consists of 10 separate parts totaling $120 in direct materials, and requires 2.0 hours of machine time to produce. Additional information follows:
 
-What is the cost of materials handling per cuckoo clock?
A) $3.00 
B) $5.00 
C) $4.50 
D) $12.50

Quizplus · Accepted Answer

D) 1 clock = 10 parts × $1.25 per part = $12.50

Use the Information Below to Answer the Following Question(s)