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Electronics Unlimited uses activity-based costing to allocate all manufacturing conversion costs. Electronics Unlimited produces computer keyboards; each computer keyboard has $8.00 of direct materials, includes 12 parts and requires 1/2 hour of machine time. Additional information follows: Activity Allocation Base Cost Allocation Rate Materials handling Number of parts $ .25 per part Machining Machine hours $12.00 per machine hour Assembling Number of parts $1.00 per part Packaging Number of finished units $1.75 per finished unit What is the cost of materials handling per computer keyboard?
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