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The Sit- N-Spin Corporation manufactures and assembles office chairs. Sit-N-Spin uses an activity-based costing system to allocate all manufacturing conversion costs. Each chair consists of 20 separate parts totaling $125 in direct materials, and requires 3 hours of machine time to produce. Additional information follows: Activity Allocation Base Cost Allocation Rate Materials handling Number of parts $2.75 per part Machining Machine hours $5.00 per machine hour Assembling Number of parts $5.50 per part Packaging Number of finished units $7.75 per finished unit What is the cost of materials handling per chair?
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The Sit- N-Spin Corporation manufactures and assembles office chairs. Sit-N-Spin uses an activity-ba...
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