Telecom uses activity-based costing to allocate all manufacturing conversion costs. Telecom produces cellular telephones; each phone has $40.00 of direct materials, includes 30 parts and requires 3 hours of machine time. Additional information follows: What is the cost of materials handling per phone?
A)$42.00
B)$ 6.00
C)$15.00
D)$30.00

Question

Telecom uses activity-based costing to allocate all manufacturing conversion costs. Telecom produces cellular telephones; each phone has $40.00 of direct materials, includes 30 parts and requires 3 hours of machine time. Additional information follows:  What is the cost of materials handling per phone?
A)$42.00 
B)$ 6.00 
C)$15.00 
D)$30.00

Quizplus · Accepted Answer

The Answer of Telecom uses activity-based costing to allocate all manufacturing conversion costs. Telecom produces cellular telephones; each phone has $40.00 of direct materials, includes 30 parts and requires 3 hours of machine time. Additional information follows:  What is the cost of materials handling per phone?
A)$42.00 
B)$ 6.00 
C)$15.00 
D)$30.00

Telecom Uses Activity-Based Costing to Allocate All Manufacturing Conversion Costs