Pittinger Company Manufactures Cuckoo Clocks and Uses an Activity-Based Costing

Multiple Choice

Pittinger Company manufactures cuckoo clocks and uses an activity-based costing system.Each cuckoo clock consists of 10 separate parts totaling $120 in direct materials,and requires 2.0 hours of machine time to produce.Additional information follows:

What is the cost of materials handling per cuckoo clock?

A) $3.00
B) $5.00
C) $4.50
D) $12.50