The Sit-N-Spin Corporation Manufactures and Assembles Office Chairs

question 90

Multiple Choice

The Sit-N-Spin Corporation manufactures and assembles office chairs. Sit-N-Spin uses an activity-based costing system to allocate all manufacturing conversion costs. Each chair consists of 20 separate parts totaling $125 in direct materials, and requires 2.0 hours of machine time to produce. Additional information follows: What is the cost of assembling per chair?

• A)$6.00
• B)$5.50
• C)$30.00
• D)$55.00