OP Technologies Manufacturing manufactures small parts and uses an activity-based costing system. The following parts were produced in October with the following information:
Total manufacturing costs for part B is
A)$9400
B)$18,400
C)$14,900
D)$23,900

Question

OP Technologies Manufacturing manufactures small parts and uses an activity-based costing system.  The following parts were produced in October with the following information:
 Total manufacturing costs for part B is
A)$9400 
B)$18,400 
C)$14,900 
D)$23,900

Quizplus · Accepted Answer

The question asks for the total manufacturing costs for part B, and based on the information given, the total cost is the sum of the activity costs for each activity involved in the manufacturing process. Using the provided table, the total activity cost for part B is: 
- Machining: 900 * 60 = 54,000 
- Setup: 8 * 200 = 1,600 
- Inspection: 24 * 40 = 960

Therefore, the total manufacturing cost for part B is $54,000 + $1,600 + $960 = $56,560. Option D is the closest number to this value, so it is the best choice.

OP Technologies Manufacturing Manufactures Small Parts and Uses an Activity-Based