Colonial Company Manufactures Decorative Wall Clocks and Uses Activity-Based Costing

Multiple Choice

Colonial Company manufactures decorative wall clocks and uses activity-based costing.Each clock consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce.Additional information is as follows: What is the cost of assembling per clock?

A) $7.00.
B) $7.50.
C) $35.00.
D) $70.00.
E) $87.50.