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The Cosmo Corporation Manufactures and Assembles Office Chairs

Question 218

Multiple Choice

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: 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: What is the cost of materials handling per chair? A) $26.25 B) $7.50 C) $5.50 D) $4.00 What is the cost of materials handling per chair?


A) $26.25
B) $7.50
C) $5.50
D) $4.00

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