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O&G Company manufactures console tables and uses an activity - based costing system to allocate all manufacturing conversion costs. Each console table consists of 20
O&G Company manufactures console tables and uses an activity - based costing system to allocate all manufacturing conversion costs. Each console table consists of 20 separate parts totaling $240 in direct materials and requires 4 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 Activity Materials handling Machining Assembling Packaging What is the total manufacturing cost per console table? Cost Allocation Rate $4.00 per part $3.10 per machine hour $4.00 per part $2.00 per finished unit
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