Question
Bears Incorporation manufactures chainsaws that sell for $62. Each chainsaw uses $12 in direct materials and $8 in direct labor per unit. Bears Inc. uses
Bears Incorporation manufactures chainsaws that sell for $62. Each chainsaw uses $12 in direct materials and $8 in direct labor per unit. Bears Inc. uses two activities to assign overhead costs: Machining, which is applied at the rate of $3 per machine hour, and Finishing, which is applied at the rate of $25 per batch. This month, Bears made 230 chainsaws, using 1,005 machine hours in 45 batches. What is the total manufacturing cost for one chainsaw using activity based costing? (Do not round intermediate calculations.) Multiple Choice $20 $41 $38 $18
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