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

question 77

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 assembling per tire?

• A)$15.40
• B)$7.00
• C)$14.00
• D)$28.00

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Definitions:

Training And Development

Programs and activities aimed at improving the knowledge, skills, and competencies of employees to enhance their performance and career growth.

Hybrid

A combination of two or more different things, aimed at achieving a particular objective or enhancing functionality, such as hybrid vehicles or hybrid work models.

Compensation Policy

Guidelines or principles that direct how an organization assigns monetary and non-monetary rewards to its employees.

Entry-Level Workers

Employees who are at the beginning stage of their career, typically with less experience and qualifications, and often starting at the lower end of an organization's pay scale.