Hamilton, a decorative wall clock manufacturer uses activity-based costing. Each clock consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information is as follows: Activity Materials handling Number of parts Machining Machine hours Assembling Number of parts Packaging Number of finished clocks What is the cost of machining per clock? Multiple Choice Allocation Base $144.00 Cost Allocation Rate $ 0.08 7.20 0.35 2.70
Hamilton, a decorative wall clock manufacturer uses activity-based costing. Each clock consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information is as follows: Activity Materials handling Number of parts Machining Machine hours Assembling Number of parts Packaging Number of finished clocks What is the cost of machining per clock? Multiple Choice Allocation Base $144.00 Cost Allocation Rate $ 0.08 7.20 0.35 2.70
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 27E: Plata Company has identified the following overhead activities, costs, and activity drivers for the...
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![Hamilton, a decorative wall clock manufacturer uses activity-based costing. Each clock consists of 20 separate parts totaling $95 in direct
materials, and requires 2.5 hours of machine time to produce. Additional information is as follows:
Activity
Materials handling Number of parts
Machining
Machine hours
Assembling
Packaging
What is the cost of machining per clock?
Multiple Choice
$144.00
Allocation Base
$180.00
Number of parts
Number of finished clocks
Cost Allocation Rate
$ 0.08
7.20
0.35
2.70](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F35ffc135-55b8-4884-9e04-04baab3e0bc2%2Fc6463fe4-386a-4117-97bc-e5c9fc66cbd9%2Fy8nhwbe_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Hamilton, a decorative wall clock manufacturer uses activity-based costing. Each clock consists of 20 separate parts totaling $95 in direct
materials, and requires 2.5 hours of machine time to produce. Additional information is as follows:
Activity
Materials handling Number of parts
Machining
Machine hours
Assembling
Packaging
What is the cost of machining per clock?
Multiple Choice
$144.00
Allocation Base
$180.00
Number of parts
Number of finished clocks
Cost Allocation Rate
$ 0.08
7.20
0.35
2.70
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