telecom uses activity

Telecom uses activity - based costing to allocate all manufacturing conversion costs. Telecom produces cellular telephones; each phone has $60 of direct materials, includes 30 parts and requires 3 hours of machine time. Additional information follows: Activity Allocation Base Cost Allocation Rate Materials handling Number of parts $4.50 per part Machining Machine hours $3.00 per machine hour Assembling Number of parts $2.00 per part Packaging Number of finished units $6.00 per finished unit What is the cost of materials handling per phone? O A. $60 O B. $18 O C. $135 O D. $9