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

question 204

Multiple Choice

Telecom uses activity-based costing to allocate all manufacturing conversion costs. Telecom produces cellular telephones; each phone has $60.00 of direct materials, includes 40 parts and requires 3 hours of machine time. Additional information follows: What is the cost of machining per phone?

• A)$9
• B)$80
• C)$21
• D)$100

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Definitions:

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