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bernie2981 bernie2981
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9 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 packaging per lawn chair?
A) $3.00
B) $13.00
C) $11.20
D) $8.00
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Managerial Accounting

Managerial Accounting


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nucleinuclei
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bernie2981 Author
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9 years ago
You're such a dedicated member, I very much appreciate the help.

Marking this solved ✓
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