The Cosmo Corporation manufactures and assembles office chairs. Cosmo uses an activityminus-based costing system to allocate all manufacturing conversion costs. Each chair consists of 15 separate parts totaling$125 in directmaterials, and requires 2.0 hours of machine time to produce. Additional informationfollows:
| Activity |
Allocation Base |
Cost Allocation Rate |
| Materials handling |
Number of parts |
$1.75 per part |
| Machining |
Machine hours |
$2.00 per machine hour |
| Assembling |
Number of parts |
$0.50 per part |
| Packaging |
Number of finished units |
$2.75 per finished unit |
What is the cost of assembling perchair?