Kramer Company Manufactures Coffee Tables and Uses an Activity-Based Costing

question 96

Multiple Choice

Kramer Company manufactures coffee tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each coffee table consists of 20 separate parts totaling $240 in direct materials, and requires 5.0 hours of machine time to produce. Additional information follows: What is the total manufacturing cost per coffee table?

• A)$316.75
• B)$ 76.75
• C)$313.75
• D)$ 55.00

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Definitions:

Population Locations

The geographically-based positions or areas where members of a specific population are found or located.

Ordinal

Pertaining to a scale or measurement where the order of values is significant, but the intervals between values are not necessarily consistent or known.

Interval

A range of numbers between two set points where any number within that range is included.

Randomized Block Experiment

A randomized block experiment is a type of statistical experiment in which subjects are divided into blocks based on characteristics that might affect the response, and then within each block, subjects are randomly assigned to treatments.