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

question 65

Multiple Choice

Use the information below to answer the following question(s) :
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:

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

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

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Definitions:

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy, often used in economic analysis and policy-making.

Expansionary Gap

A situation where the actual output of an economy exceeds its potential output, often leading to inflationary pressures.

Recessionary Gap

The situation where an economy's real GDP is less than its potential GDP, leading to underutilization of resources and unemployment.

Short-Run Output

The production level of goods and services in the short term, often under fixed conditions or capacities.