Telecom uses activity-based costing to allocate all manufacturing conversion costs. Telecom produces cellular telephones; each phone has $60.00 of direct materials, includes 40 parts and requires 3 hours of machine time. Additional information follows: What is the cost of machining per phone?
A)$9
B)$80
C)$21
D)$100

Question

Telecom uses activity-based costing to allocate all manufacturing conversion costs. Telecom produces cellular telephones; each phone has $60.00 of direct materials, includes 40 parts and requires 3 hours of machine time. Additional information follows:  What is the cost of machining per phone?
A)$9 
B)$80 
C)$21 
D)$100

Quizplus · Accepted Answer

The Answer of Telecom uses activity-based costing to allocate all manufacturing conversion costs. Telecom produces cellular telephones; each phone has $60.00 of direct materials, includes 40 parts and requires 3 hours of machine time. Additional information follows:  What is the cost of machining per phone?
A)$9 
B)$80 
C)$21 
D)$100

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