The Sit-N-Spin Corporation Manufactures and Assembles Office Chairs

Multiple Choice

The Sit-N-Spin Corporation manufactures and assembles office chairs. Sit-N-Spin uses an activity-based costing system to allocate all manufacturing conversion costs. Each chair consists of 10 separate parts totaling $145 in direct materials, and requires 6.0 hours of machine time to produce. Additional information follows: What is the cost of machining per chair?

A) $18.00
B) $30.00
C) $72.00
D) $28.50