Kenney Company uses activity-based costing to account for its manufacturing process. Kenney Company produces tires, and each tire has $.50 of direct materials, includes 20 parts and requires 2 hours of machine time. Additional information follows:

-What is the cost of machining per tire?

Question

Kenney Company uses activity-based costing to account for its manufacturing process. Kenney Company produces tires, and each tire has $.50 of direct materials, includes 20 parts and requires 2 hours of machine time. Additional information follows:
 
-What is the cost of machining per tire?

Quizplus · Accepted Answer

The cost of machining per tire is calculated based on the information provided, which leads to the correct answer being $28.80.

Kenney Company Uses Activity-Based Costing to Account for Its Manufacturing