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points Star Company manufactures large portable heaters and uses ABC to allocate all indirect manufacturing costs. Each portable heater requires $20 of direct labor and
points Star Company manufactures large portable heaters and uses ABC to allocate all indirect manufacturing costs. Each portable heater requires $20 of direct labor and consists of 34 separate parts totaling 5110 in direct materials. Each unit requires 6.0 machine hours to produce. Additional information follow Activity Allocation Base Materials handling Number of parts Machining Machine hours Assembling Number of parts Packaging Number of finished units What is the total manufacturing cost of one portable heater? 5201,60 Cost Allocation Rate $1.75 per part $3 20 per machine hour $1 10 per part $4.00 per finished unit $111.60 $221.60 391.60
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