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Hang Ten Company manufactures surf boards and uses an activity - based costing system to...

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Question

Accounting

Hang Ten Company manufactures surf boards and uses an activity - based costing system to allocate all manufacturing conversion costs. Each surf board consists
of 10 separate parts totaling $135 in direct materials, and requires 3.0 hours of machine time to produce. The company incurs no direct labor costs. 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
$3.75 per part
$3.00 per machine hour
$2.50 per part
$4.75 per finished unit
What is the total manufacturing cost per surf board?
A. $211.25
B. $97.25
C. $30.00
D. $227.50
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