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

question 136

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 total manufacturing cost per cuckoo clock?

• A)$142.50
• B)$24.00
• C)$144.00
• D)$25.00

---

Definitions:

Primary Drives

Basic, innate drives that motivate behavior essential for survival, such as hunger, thirst, and avoidance of pain.

Hull

An American psychologist who developed the drive-reduction theory, emphasizing the role of biological needs in motivation and behavior.

Stimulus-Response

The basic concept that a specific stimulus will elicit a specific, predictable response in an organism.

Associative

Relating to or involving connections between ideas, feelings, memories, or experiences.