The Sit-N-Spin Corporation manufactures and assembles office chairs. Sit-N-Spin uses an activity-based costing system to allocate all manufacturing conversion costs. Each chair consists of 30 separate parts totaling $125 in direct materials, and requires 6.0 hours of machine time to produce. Additional information follows: What is the cost of materials handling per chair?
A)$112.50
B)$135.00
C)$46.50
D)$36.00

Question

The Sit-N-Spin Corporation manufactures and assembles office chairs. Sit-N-Spin uses an activity-based costing system to allocate all manufacturing conversion costs. Each chair consists of 30 separate parts totaling $125 in direct materials, and requires 6.0 hours of machine time to produce. Additional information follows:  What is the cost of materials handling per chair?
A)$112.50 
B)$135.00 
C)$46.50 
D)$36.00

Quizplus · Accepted Answer

The Answer of The Sit-N-Spin Corporation manufactures and assembles office chairs. Sit-N-Spin uses an activity-based costing system to allocate all manufacturing conversion costs. Each chair consists of 30 separate parts totaling $125 in direct materials, and requires 6.0 hours of machine time to produce. Additional information follows:  What is the cost of materials handling per chair?
A)$112.50 
B)$135.00 
C)$46.50 
D)$36.00

The Sit-N-Spin Corporation Manufactures and Assembles Office Chairs