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 10 parts and requires 6 hours of machine time. Additional information follows: What is the cost of assembling per phone?

A) $24
B) $18
C) $5
D) $20