Question
Hang Ten Company manufactures surf boards and uses an activity-based costing system to allocate all manufacturing conversion costs. Each surf board consists of 20
Hang Ten Company manufactures surf boards and uses an activity-based costing system to allocate all manufacturing conversion costs. Each surf board consists of 20 separate parts totaling $155 in direct materials, and requires 5 hours of machine time to produce. The company incurs no direct labor costs. Additional information follows: Activity Materials handling Machining Assembling Packaging Allocation Base Number of parts Machine hours Number of parts Number of finished units Cost Allocation Rate $2.75 per part $5.00 per machine hour $4.50 per part $6.75 per finished unit What is the total manufacturing cost per surf board? OA. $100.00 OB. $251.75 c. $331.75 OD. $400.00
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