The Cosmo Corporation manufactures and assembles office chairs. Cosmo uses an activity-based costing system to allocate all manufacturing conversion costs. Each chair consists of 15 separate parts totaling $125 in direct materials, and requires 2.0 hours of machine time to produce. Additional information follows: What is the cost of machining per chair?
A)$4.00
B)$30.00
C)$15.50
D)$5.50

Question

The Cosmo Corporation manufactures and assembles office chairs. Cosmo uses an activity-based costing system to allocate all manufacturing conversion costs. Each chair consists of 15 separate parts totaling $125 in direct materials, and requires 2.0 hours of machine time to produce. Additional information follows:  What is the cost of machining per chair?
A)$4.00 
B)$30.00 
C)$15.50 
D)$5.50

Quizplus · Accepted Answer

The Answer of The Cosmo Corporation manufactures and assembles office chairs. Cosmo uses an activity-based costing system to allocate all manufacturing conversion costs. Each chair consists of 15 separate parts totaling $125 in direct materials, and requires 2.0 hours of machine time to produce. Additional information follows:  What is the cost of machining per chair?
A)$4.00 
B)$30.00 
C)$15.50 
D)$5.50

The Cosmo Corporation Manufactures and Assembles Office Chairs