Question
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
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:
ActivityAllocation Base Cost Allocation Rate
Materials handlingNumber of parts$0.08
MachiningMachine hours 7.20
AssemblingNumber of parts 0.35
PackagingNumber of finished clocks 2.70
What is the total manufacturing cost per clock?
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Managerial Accounting Tools For Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
5th Canadian Edition
