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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 separate parts
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 $290 in direct materials and requires 6 hours of machine time to produce. The company incurs no direct labor costs. Additional information follows: Activity Materials handling Machining Assembling Packaging What is the total manufacturing cost per console table? OA. $453.40 OB. $169.40 C. $78.00 OD. $459.40 Allocation Base Number of parts Machine hours Number of parts Number of finished units Cost Allocation Rate $3.00 per part $3.90 per machine hour $4.00 per part $6.00 per finished unit
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