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Hang Ten Company manufactures surf 5145 in direct materials, and requires Activity Materials handling Machining Assembling Packaging boards and uses an activity-based costing system
Hang Ten Company manufactures surf 5145 in direct materials, and requires Activity Materials handling Machining Assembling Packaging boards and uses an activity-based costing system to allocate all manufacturing conversion costs. Each surfboard consists of 30 separate parts totaling 2 hours of machine time to produce. The company incurs no direct labor costs. Additional information follows: Allocation Base Number of parts Machine hours Number of parts Number of finished units What is the total manufacturing cost per surfboard? Cost Allocation Rate $4.75 per part $6.00 per machine hour $5.50 per part $5.75 per finished unit OA. $632.50 OB. $493.25 OC. $470.25 D. $180.00
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