Use the information below to answer the following question(s):
Durable Engines Company uses ABC to account for it manufacturing process.

Durable Engines Company expects to produce 2,000 engines. Durable Engines Company also expects to use 12,000 parts and have 16 setups.
-The allocation rate for materials handling will be
A) $5.28.
B) $6.40.
C) $3.00.
D) $18.00.

Question

Use the information below to answer the following question(s):
Durable Engines Company uses ABC to account for it manufacturing process.
 
 Durable Engines Company expects to produce 2,000 engines. Durable Engines Company also expects to use 12,000 parts and have 16 setups.
-The allocation rate for materials handling will be
A) $5.28. 
B) $6.40. 
C) $3.00. 
D) $18.00.

Quizplus · Accepted Answer

C) $36,000/12,000 = $3.00

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