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P&A Inc. manufactures console tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each console table consists of 20 separate
P&A Inc. 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 $220 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 $3.00 per part $5.00 per machine hour $2.00 per part $7.00 per finished unit Which of the following is the total manufacturing cost per console table? A. $345.00 B. $352.00 C. $132.00 D. $100.00
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