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

question 128

Multiple Choice

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. There is no direct labor. Additional information follows:
$\begin{array}{|l|l|r|}\hline\text { Activity }&\text { Allocation Base }&\text { Cost Allocation Rate }\\\hline \text { Materials handling } & \text { Number of parts } & \$ .16\\\hline \text { Machining } & \text { Machine hours } & \$ 14.40 \\\hline \text { Assembling } & \text { Number of parts } & \$ .70\\\hline \text { Packaging } & \text { Number of finished units } & \$ 5.40\\\hline\end{array}$

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What is the cost of materials handling per tire?

• A) $5.60
• B) $16.00
• C) $1.60
• D) $3.20

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Definitions:

Installation

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Directed Eye Movements

A therapeutic technique, commonly used in EMDR therapy, which employs eye movements to aid in the processing of traumatic memories.

EMDR

Eye Movement Desensitization and Reprocessing, a psychotherapy treatment designed to alleviate the distress associated with traumatic memories.

Meta-Analyses

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