Pittinger Company Manufactures Cuckoo Clocks and Uses an Activity-Based Costing

question 70

Multiple Choice

Pittinger Company manufactures cuckoo clocks and uses an activity-based costing system.Each cuckoo clock consists of 10 separate parts totaling $120 in direct materials,and requires 2.0 hours of machine time to produce.Additional information follows:

What is the cost of materials handling per cuckoo clock?

• A)$3.00
• B)$5.00
• C)$4.50
• D)$12.50

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Definitions:

Z-Score

A measure showing how many standard deviations an element is from the mean.

Z-Scores

Standardized scores that indicate the number of standard deviations an element is from the mean of its distribution.

Standard Deviations

A measure that quantifies the amount of dispersion or variation of a set of data values from the mean.

Z-Scores

Standardized scores that indicate how many standard deviations an element is from the mean of its data set.