Telecom Uses Activity-Based Costing to Allocate All Manufacturing Conversion Costs

question 134

Multiple Choice

Telecom uses activity-based costing to allocate all manufacturing conversion costs. Telecom produces cellular telephones; each phone has $40.00 of direct materials, includes 30 parts and requires 3 hours of machine time. Additional information follows: What is the cost of materials handling per phone?

• A)$42.00
• B)$ 6.00
• C)$15.00
• D)$30.00

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