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

question 145

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 assembling per phone?

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

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Definitions:

Non-Participating

Refers to insurance policies or investment products that do not provide dividends or bonuses to policyholders or investors.

Yearly Dividend

The total dividend payment a company offers to its shareholders annually, which can be a sign of the company's profitability and financial health.

Common Stock

A form of corporate equity ownership, a type of security representing holding a portion of a company.

Receiving Dividends

This refers to the action of shareholders being paid a portion of a company's earnings based on the number of shares they own.