Pittinger Company manufactures cuckoo clocks and uses an activity-based costing system to allocate all manufacturing conversion costs. Each cuckoo clock consists of 10 separate parts totaling $120 in direct materials, and requires 2.0 hours of machine time to produce. Additional information follows:

Activity Allocation Base Cost Allocation Rate

Materials handling Number of parts $1.25 per part

Machining Machine hours $2.50 per machine hour

Assembling Number of parts $0.50 per part

Packaging Number of finished units $1.50 per finished unit

What is the cost of assembling per cuckoo clock?

Select one:

a. $4.50

b. $12.50

c. $5.00

d. $3.00