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bernie2981 bernie2981
wrote...
Posts: 3810
8 years ago
Back Porch Company manufactures lawn chairs using an activity-based costing system to allocate all manufacturing conversion costs. The following information is provided for the month of June:

Activity   Estimated Indirect Activity Costs   Allocation Base   Estimated Quantity of Allocation Base
Materials handling    $12,000   Number of parts   12,000 parts
Assembling    $16,800   Number of parts   12,000 parts
Packaging    $4,500   Number of lawn chairs   1,500 lawn chairs

Each lawn chair consists of 8 parts; the total direct materials cost per lawn chair is $10.00.

What is the total cost of materials handling and assembling for each lawn chair?
A) $11.20
B) $19.20
C) $21.20
D) $32.20
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
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nucleinuclei
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Posts: 2158
8 years ago
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Good timing, thanks!
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