#16

The Sit-N-Spin Corporation manufactures and assembles office chairs. Sit-N-Spin uses an activity-based costing system to allocate all manufacturing conversion costs. Each chair consists of 10 separate parts totaling $105 in direct materials, and requires 6 hours of machine time to produce. Additional information follows: Activity Materials handling Machining Assembling Packaging Allocation Base Cost Allocation Rate Number of parts $2.75 per part $6.00 per machine hour $0.50 per part Machine hours Number of parts $3.75 per finished unit Number of finished units What is the cost of machining per chair? A. $22.50 O B. $36.00 C. $60.00 D. $78.00