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Telecom uses activity-based costing to allocate all manufacturing conversion costs. Telecom produces cellular telephones; each phone has $60.00 of direct materials, includes 50 parts and
Telecom uses activity-based costing to allocate all manufacturing conversion costs. Telecom produces cellular telephones; each phone has $60.00 of direct materials, includes 50 parts and requires 4 hours of machine time. Additional information follows: Activity Allocation Base Cost Allocation Rate Materials handling Number of parts $4.50 per part $6.00 per machine Machining Machine hours hour Assembling Number of parts $1.00 per part Packaging Number of finished units $5.00 per finished unit What is the cost of assembling per phone? $50 $20 O $24 0 $225
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