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

question 165

Multiple Choice

Telecom uses activity-based costing to allocate all manufacturing conversion costs. Telecom produces cellular telephones; each phone has $50.00 of direct materials, includes 20 parts and requires 6 hours of machine time. Additional information follows: What is the cost of materials handling per phone?

• A)$18
• B)$36
• C)$10
• D)$80