Telecom Uses Activity-Based Costing to Allocate All Manufacturing Conversion Costs

Multiple Choice

Telecom uses activity-based costing to allocate all manufacturing conversion costs.Telecom produces cellular telephones;each phone has $40.00 of direct materials,includes 30 parts and requires 3 hours of machine time.Additional information follows:

What is the cost of machining per phone?

A) $42.00
B) $30.00
C) $6.00
D) $15.00