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

question 101

Multiple Choice

Pittinger Company manufactures cuckoo clocks and uses an activity-based costing system to allocate all manufacturing conversion costs.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 machining per cuckoo clock?

• A)$5.00
• B)$3.00
• C)$10.50
• D)$25.00

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Definitions:

Obedience

The act of following orders or complying with authority, often studied in the context of how people respond to commands from those in power.

Matching Hypothesis

The theory that individuals are more likely to form and succeed in relationships with others who are similarly attractive.

Altruism

The selfless concern for the well-being of others without the expectation of reward.

Popular

Being liked, admired, or supported by a large number of people or within a specific community or group.