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Colonial Company manufactures decorative wall clocks and uses activity-based costing. Each clock consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce.
Additional information is as follows:
Activity Allocation Base Cost Allocation Rate
Materials handling Number of parts $0.08 Machining Machine hours 7.20 Assembling Number of parts 0.35 Packaging Number of finished clocks 2.70
Problem 1: What is the total manufacturing cost per clock?
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