The Cosmo Corporation manufactures
Question # 00385191
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Updated on: 09/13/2016 01:52 AM Due on: 09/13/2016
The Cosmo Corporation manufactures and assembles office chairs. Cosmo uses an activityminus?based costing system to allocate all manufacturing conversion costs. Each chair consists of 15 separate parts totaling$125 in directmaterials, and requires 2.0 hours of machine time to produce. Additional informationfollows:
| Activity | Allocation Base | Cost Allocation Rate |
| Materials handling | Number of parts | $1.75 per part |
| Machining | Machine hours | $2.00 per machine hour |
| Assembling | Number of parts | $0.50 per part |
| Packaging | Number of finished units | $2.75 per finished unit |
What is the cost of assembling perchair?
A.$5.50
B.$4.00
C.$26.25
D.$7.50
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Rating:
/5
Solution: The Cosmo Corporation manufactures