Kramer Company Manufactures Coffee Tables and Uses an Activity-Based Costing

Multiple Choice

Kramer Company manufactures coffee tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each coffee table consists of 20 separate parts totaling $240 in direct materials, and requires 5.0 hours of machine time to produce. Additional information follows: What is the total manufacturing cost per coffee table?

A) $316.75
B) $ 76.75
C) $313.75
D) $ 55.00