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

question 24

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 machining per phone?

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

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Definitions:

Binding Contract

An agreement between parties that is legally enforceable by law, containing all essential elements of a contract.

Unilateral Contract

A contract in which only one party makes a promise or undertakes a performance, while the other party accepts by performing the specified act.

Oral Acceptance

The verbal agreement to the terms of a contract, which in some cases can be legally binding, depending on the nature of the contract and jurisdiction.

Battle Of The Forms

A situation in contract law where two parties form an agreement based on differing standard terms and conditions, typically through the exchange of forms like purchase orders and invoices.