Hang Ten Company manufactures surf boards and uses an activity-based costing system to allocate all manufacturing conversion costs. Each surf board consists of 10 separate parts totaling $135 in direct materials, and requires 3.0 hours of machine time to produce. Additional information follows: What is the total manufacturing cost per surf board?
A) $211.25
B) $97.25
C) $227.50
D) $30.00
Correct Answer:
Verified
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