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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