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What is the cost of assembling perchair

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The Cosmo Corporation manufactures and assembles office chairs. Cosmo uses an activityminus-based costing system to allocate all manufacturing conversion costs. Each chair consists of 15 separate parts totaling$125 in directmaterials, and requires 2.0 hours of machine time to produce. Additional informationfollows:

Activity Allocation Base Cost Allocation Rate
Materials handling Number of parts $1.75 per part
Machining Machine hours $2.00 per machine hour
Assembling Number of parts $0.50 per part
Packaging Number of finished units $2.75 per finished unit

What is the cost of assembling perchair?

Reference no: EM131812676

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