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Other Fields Homework Help Accounting Topic started by: bernie2981 on Nov 14, 2015



Title: The Cosmo Corporation manufactures and assembles office chairs. Cosmo uses an activity-based costing
Post by: bernie2981 on Nov 14, 2015
The Cosmo Corporation manufactures and assembles office chairs. Cosmo uses an activity-based costing system to allocate all manufacturing conversion costs. Each chair consists of 15 separate parts totaling $125 in direct materials, and requires 2.0 hours of machine time to produce. Additional information follows:

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 machining per chair?
A) $4.00
B) $30.00
C) $5.50
D) $15.50


Title: Re: The Cosmo Corporation manufactures and assembles office chairs. Cosmo uses an activity-based cos
Post by: nuclei on Nov 20, 2015
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Title: Re: The Cosmo Corporation manufactures and assembles office chairs. Cosmo uses an activity-based costing
Post by: bernie2981 on Dec 1, 2015
You're such a dedicated member, I very much appreciate the help.

Marking this solved ✓