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 $13,000 Number of parts 16,200 parts Assembling $15,600 Number of parts 16,200 parts Packaging $4600 Number of lawn chairs 1800 lawn chairsEach lawn chair consists of 9 parts; the total direct materials cost per lawn chair is $18. What is the total cost of materials handling and assembling for each lawn chair? Question 22 options: $8.67 $36.44 $15.89 $26.67
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 $13,000 Number of parts 16,200 parts Assembling $15,600 Number of parts 16,200 parts Packaging $4600 Number of lawn chairs 1800 lawn chairsEach lawn chair consists of 9 parts; the total direct materials cost per lawn chair is $18. What is the total cost of materials handling and assembling for each lawn chair? Question 22 options: $8.67 $36.44 $15.89 $26.67
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:
Each lawn chair consists of 9 parts; the total direct materials cost per lawn chair is $18.
What is the total cost of materials handling and assembling for each lawn chair?
| Activity | Estimated Indirect Activity Costs |
Allocation Base | Estimated Quantity of Allocation Base |
| Materials handling | $13,000 | Number of parts | 16,200 parts |
| Assembling | $15,600 | Number of parts | 16,200 parts |
| Packaging | $4600 | Number of lawn chairs | 1800 lawn chairs |
What is the total cost of materials handling and assembling for each lawn chair?
Question 22 options:
|
|
$8.67
|
|
|
$36.44
|
|
|
$15.89
|
|
|
$26.67
|
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