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 to allocate all manufacturing conversion costs.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 total manufacturing cost per cuckoo clock?

A) $142.50
B) $24.00
C) $144.00
D) $25.00