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Beaver Company manufactures coffee tables and uses an activity- based costing system. Each coffee table consists of 30 separate parts totaling $210 in direct materials,
Beaver Company manufactures coffee tables and uses an activity- based costing system. Each coffee table consists of 30 separate parts totaling $210 in direct materials, and requires 6.0 hours of machine time to produce. Additional information follows Activity Materials handling Allocation Base Number of parts Machine hours Number of parts Number of finished units Cost Allocation Rate S3.00 per part 3.50 per machine hour S1.00 per part $6.00 per finished unit Assembling Packaging What is the cost of materials handling per coffeet able? OA. $90 O B. $13 O c. $12 O D. $30
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