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Beaver Company manufactures coffee tables and uses an activityminusbased costing system to allocate all manufacturing conversion costs. Each coffee tables consists of 20 separate parts totaling $ 220 in direct​ materials, and requires 7 hours of machine time to produce. Additional information​ follows:Activity Allocation Base Cost Allocation Rate Materials handling Number of parts $2.00 per part Machining Machine hours $4.10 per machine hour Assembling Number of parts $3.00 per part Packaging Number of finished units $7.00 per finished unit What is the cost of materials handling per coffee table? a. $12 b. $60 c. $90 d. $13

Respuesta :

Answer:

$40

Explanation:

The computation of the cost of materials handling per coffee table is shown below:

= Number of parts × rate per part

= 20 separate parts × $2

= $40

In order to find out the cost of material handing, we multiplied the number of parts with the rate per part so that the actual cost could have come

Note:This is the answer but the same is not provided in the given options

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