Electronics Unlimited Uses Activity-Based Costing to Allocate All Manufacturing Conversion

question 105

Multiple Choice

Electronics Unlimited uses activity-based costing to allocate all manufacturing conversion costs.Electronics Unlimited produces computer keyboards; each computer keyboard has $8.00 of direct materials,includes 12 parts and requires 1/2 hour of machine time.Additional information follows: $\begin{array}{|l|l|r|}\hline \text { Activity } & \text { Allocation Base } & \text { Cost Allocation Rate } \\\hline \text { Materials handling } & \text { Number of parts } & \$ .25 \text { per part } \\\hline \text { Machining } & \text { Machine hours } & \$ 12.00 \text { per machine hour } \\\hline \text { Assembling } & \text { Number of parts } & \$ 1.00 \text { per part } \\\hline \text { Packaging } & \text { Number of finished units } & \$ 1.75 \text { per finished unit } \\\hline\end{array}$


- What is the cost of materials handling per computer keyboard?

• A)$ 0.88
• B)$15.00
• C)$ 6.00
• D)$12.00

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