O&G Company manufactures console tables and uses an activity-based costing system to allocate all manufacturing conversion...

 

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O&G Company manufactures console tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each console table consists of 40 separate parts totaling $210 in direct materials and requires 7 hours of machine time to produce. Additional information follows: Activity Materials handling Machining Assembling Packaging Allocation Base Number of parts Machine hours Number of parts Number of finished units Cost Allocation Rate $1.00 per part $2.60 per machine hour $4.00 per part $7.00 per finished unit What is the cost of machining per console table? O&G Company manufactures console tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each console table consists of 40 separate parts totaling $210 in direct materials and requires 7 hours of machine time to produce. Additional information follows: Activity Materials handling Machining Assembling Packaging Allocation Base Number of parts Machine hours Number of parts Number of finished units Cost Allocation Rate $1.00 per part $2.60 per machine hour $4.00 per part $7.00 per finished unit What is the cost of machining per console table?

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