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

---

Definitions:

Generalized Anxiety Disorder

A mental health disorder characterized by pervasive and excessive anxiety and worry about various aspects of life, beyond normal stressors.

Apprehensive

Feeling anxiety or fear about the future or something specific.

Free-Floating

A term often used in psychology to describe anxiety that is not attached to specific situations or objects.

Generalized Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry about various aspects of life, beyond the typical anxiety experienced by individuals.