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$ Nichols Inc, manufactures remote controls. Currently the company uses a plant - wide rate for allocating manufacturing over
department to identify the primary production activities and their cost drivers which are as follows: Activities Cost driver
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Answer #1
Material handling charges (100*$4) $     400
Assembly charges (6*$20) $     120
Inspection charges (3*$10) $        30
Total overheads per batch $     550
Number of remotes in one batch            40
Overhead cost per remote ($550/40) $ 13.75

Answer is A. $13.75 per remote

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