Use the Information Below to Answer the Following Question(s)

question 23

Multiple Choice

Use the information below to answer the following question(s) :
Pittinger Company manufactures cuckoo clocks and uses an activity-based costing system. 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:

-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:

Business Activities

Various processes and tasks undertaken by businesses, including operations, marketing, management, and financial transactions.

Investing

The process of distributing funds with the aim of earning a return or profit.

Operating

Refers to the functioning or management of operations within a business or computer environment.