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OP Technologies Manufacturing manufactures small parts and uses an activity-based costing system. Activity Materials Assembling Packaging Est. Indirect Activity Costs $85,000 Allocation base Material
OP Technologies Manufacturing manufactures small parts and uses an activity-based costing system. Activity Materials Assembling Packaging Est. Indirect Activity Costs $85,000 Allocation base Material moves $265,000 $110,000 Machine hours # of finished units Cost allocation rate $4/move $11/machine hour $1/finished unit The following parts were produced in October with the following information. The company incurs no direct labor costs. Part Produced Materials Costs A 2,350 $3,200 B 2,000 $8,500 C 4,950 $10,000 Total manufacturing costs for part B is OA. $21,875 OB. $23,875 OC. $13,375 OD. $15.375 #Moves 800 1.900 2,200 Machine Hrs. 250 525 1,100
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