Kramer Company manufactures coffee tables and uses an activity-based costing system to allocate all manufacturing conversion costs.Each coffee tables 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 cost of assembling per coffee table?
A)$40.00
B)$15.00
C)$7.75
D)$20.00

Question

Kramer Company manufactures coffee tables and uses an activity-based costing system to allocate all manufacturing conversion costs.Each coffee tables 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 cost of assembling per coffee table?

What is the cost of assembling per coffee table?
A)$40.00 
B)$15.00 
C)$7.75 
D)$20.00

Quizplus · Accepted Answer

D)20 parts × $1.00 per part = $20.00

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