Garrett Company manufactures coffee tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each coffee table 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 total manufacturing cost per chair?
A)$165.50
B)$40.50
C)$162.75
D)$30.00

Question

Garrett Company manufactures coffee tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each coffee table 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 total manufacturing cost per chair?
A)$165.50 
B)$40.50 
C)$162.75 
D)$30.00

Quizplus · Accepted Answer

The Answer of Garrett Company manufactures coffee tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each coffee table 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 total manufacturing cost per chair?
A)$165.50 
B)$40.50 
C)$162.75 
D)$30.00

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