250

200

20

Cannot be determined from the information given

4. Which of the following is least likely to be classified as a batch-level activity in an activity-based costing system?

• Quality assurance.

• Receiving and inspection.

• Shipping.

• Property taxes.

• Production setup.

Colonial Company manufactures decorative wall clocks and uses activity-based costing. Each clock consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information is as follows: Activity Materials handling Machining Assembling Packaging Allocation Base Number of parts Machine hours Number of parts Number of finished clocks Cost Allocation Rate $0.08 7.20 0.35 2.70 What is the number of finished clocks