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The Cosmo Corporation Manufactures and Assembles Office Chairs

Question 37

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 machining per chair? A) $4.00 B) $30.00 C) $15.50 D) $5.50 What is the cost of machining per chair?


A) $4.00
B) $30.00
C) $15.50
D) $5.50

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