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 $60.00 of direct materials, includes 40 parts and requires 3 hours of machine time. Additional information follows: What is the cost of machining per phone?

A) $9
B) $80
C) $21
D) $100