Kenney Company Uses Activity-Based Costing to Account for Its Manufacturing

question 150

Multiple Choice

Kenney Company uses activity-based costing to account for its manufacturing process. Kenney Company produces tires and each tire has $.50 of direct materials, includes 20 parts and requires 2 hours of machine time. There is no direct labor. Additional information follows: What is the cost of materials handling per tire?

• A)$5.60
• B)$16.00
• C)$1.60
• D)$3.20

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