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 20 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 assembling per chair?
A)$6.00
B)$5.50
C)$30.00
D)$55.00

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 20 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 assembling per chair?
A)$6.00 
B)$5.50 
C)$30.00 
D)$55.00

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 20 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 assembling per chair?
A)$6.00 
B)$5.50 
C)$30.00 
D)$55.00

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