Homework Clinic
Social Science Clinic => Accounting => Topic started by: lak on Jan 4, 2020
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Electronics Unlimited uses activity-based costing to allocate all manufacturing conversion costs. Electronics Unlimited produces computer keyboards; each computer keyboard has $8.00 of direct materials, includes 12 parts and requires 1/2 hour of machine time. Additional information follows:
| Activity | Allocation Base | Cost Allocation Rate |
| Materials handling | Number of parts | $.25 per part |
| Machining | Machine hours | $12.00 per machine hour |
| Assembling | Number of parts | $1.00 per part |
| Packaging | Number of finished units | $1.75 per finished unit |
What is the cost of machining per computer keyboard?
◦ $3.00
◦ $12.00
◦ $0.88
◦ $6.00
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$6.00