The Sit-N-Spin Corporation manufactures and assembles office chairs. Sit-N-Spin uses an activity-based costing system to...
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Accounting
The Sit-N-Spin Corporation manufactures and assembles office chairs. Sit-N-Spin uses an activity-based costing system to allocate all manufacturing conversion costs. Each chair consists of 30 separate parts totaling $125 in direct materials, and requires 6.0 hours of machine time to produce. Additional information follows: Activity Allocation Base Materials handling Number of parts Machining Machine hours Assembling Number of parts Packaging Number of finished units What is the cost of materials handling per chair? O $112.50 O $36.00 O $135.00 O $46.50 Cost Allocation Rate $3.75 per part $6.00 per machine hour $4.50 per part $7.75 per finished unit
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