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bernie2981 bernie2981
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8 years ago
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 assembling per chair?
A) $5.50
B) $7.50
C) $26.25
D) $4.00
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Managerial Accounting

Managerial Accounting


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nucleinuclei
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8 years ago
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bernie2981 Author
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#2
8 years ago
Wow! Thank you
Anonymous
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#3
7 months ago
Help! The answer is missing an explanation...
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#4
7 months ago
Found the solution in this document

https://biology-forums.com/index.php?action=downloads;sa=view;down=15973
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