Question: Telecom uses activity - based costing to allocate all manufacturing conversion costs. Telecom produces cellular telephones; each phone has $20 of direct materials, includes

Telecom uses activity-based costing to allocate all manufacturing conversion costs. Telecom produces cellular telephones, eac

Telecom uses activity - based costing to allocate all manufacturing conversion costs. Telecom produces cellular telephones; each phone has $20 of direct materials, includes 20 parts and requires 3 hours of machine time. Additional information follows: Activity Materials handling Allocation Base Cost Allocation Rate Number of parts $2.50 per part Machining Assembling Packaging Machine hours $5.00 per machine hour Number of parts $2.00 per part Number of finished units $6.00 per finished unit What is the cost of materials handling per phone? O A. $15 . $50 . $18 O D. $40

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