Kenney Company uses activity-based costing to account for its manufacturing process. Kenney Company produces tires and each tire has $.50 of direct materials, includes 20 parts and requires 2 hours of machine time. Additional information follows:

-What is the cost of materials handling per tire?
A) $5.60
B) $16.00
C) $1.60
D) $3.20

Question

Kenney Company uses activity-based costing to account for its manufacturing process. Kenney Company produces tires and each tire has $.50 of direct materials, includes 20 parts and requires 2 hours of machine time. Additional information follows:
 
-What is the cost of materials handling per tire?
A) $5.60 
B) $16.00 
C) $1.60 
D) $3.20

Quizplus · Accepted Answer

The Answer of Kenney Company uses activity-based costing to account for its manufacturing process. Kenney Company produces tires and each tire has $.50 of direct materials, includes 20 parts and requires 2 hours of machine time. Additional information follows:
 
-What is the cost of materials handling per tire?
A) $5.60 
B) $16.00 
C) $1.60 
D) $3.20

Kenney Company Uses Activity-Based Costing to Account for Its Manufacturing