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

question 152

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 assembling per computer keyboard?

• A)$ 6.00
• B)$12.00
• C)$ 3.00
• D)$ 0.88

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Definitions:

Social Facilitation

The phenomenon that individuals perform tasks better or differently when in the presence of others, due to increased arousal and motivation.

Empirical Studies

Research that is based on observation or experience rather than theory or pure logic.

Performance

Refers to the act of carrying out or accomplishing an action, task, or function, often evaluated in terms of its efficiency, effectiveness, and quality.

Social Facilitation

The enhancement of performance in the presence of others, typically observed in tasks that are simple or well-rehearsed.