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 15 separate parts totaling $125 in direct materials, and requires 2.0 hours of machine time to produce. Additional information follows: What is the number of finished office chairs?

A) 20
B) 100
C) 250
D) Cannot be determined from the information given