Kramer Company manufactures coffee tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each coffee table consists of 20 separate parts totaling $240 in direct materials, and requires 5.0 hours of machine time to produce. Additional information follows: What is the total manufacturing cost per coffee table?
A)$316.75
B)$ 76.75
C)$313.75
D)$ 55.00

Question

Kramer Company manufactures coffee tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each coffee table consists of 20 separate parts totaling $240 in direct materials, and requires 5.0 hours of machine time to produce. Additional information follows:  What is the total manufacturing cost per coffee table?
A)$316.75 
B)$ 76.75 
C)$313.75 
D)$ 55.00

Quizplus · Accepted Answer

The Answer of Kramer Company manufactures coffee tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each coffee table consists of 20 separate parts totaling $240 in direct materials, and requires 5.0 hours of machine time to produce. Additional information follows:  What is the total manufacturing cost per coffee table?
A)$316.75 
B)$ 76.75 
C)$313.75 
D)$ 55.00

Kramer Company Manufactures Coffee Tables and Uses an Activity-Based Costing