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

question 85

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

-What is the total manufacturing cost per cuckoo clock?

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

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Definitions:

Dispositional

Relating to the inherent qualities, traits, or tendencies that contribute to a person's enduring behavior patterns or characteristics.

Psychodynamic Theory

A psychological perspective that emphasizes unconscious processes and past experiences as determinants of an individual's behavior and personality.

Psychosocial Development

The theory proposed by Erik Erikson, which outlines how individuals progress through eight stages of development, each marked by a specific conflict.

Oral Stage

The first stage in Freud's psychosexual development, occurring in the first year of life, where pleasure centers on the mouth.