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

question 181

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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:  Activity  Allocation Base  Cost Allocation Rate  Materials handling  Number of parts $1.25 per part  Machining  Machine hours $2.50 per machine hour  Assembling  Number of parts $0.50 per part  Packaging  Number of finished units $1.50 per finished unit \begin{array}{|l|l|r|}\hline \text { Activity } & \text { Allocation Base } & \text { Cost Allocation Rate } \\\hline \text { Materials handling } & \text { Number of parts } & \$ 1.25 \text { per part } \\\hline \text { Machining } & \text { Machine hours } & \$ 2.50 \text { per machine hour } \\\hline \text { Assembling } & \text { Number of parts } & \$ 0.50 \text { per part } \\\hline \text { Packaging } & \text { Number of finished units } & \$ 1.50 \text { per finished unit } \\\hline\end{array}

-What is the number of finished cuckoo clocks?

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