Swiss Furniture Company manufactures bookshelves and uses an activity-based costing system to allocate all manufacturing conversion costs. The following information is provided for the month of May: Activity Estimated Indirect Activity Costs Allocation Base Estimated Quantity of Allocation Base Materials handling $7500 Number of parts 7080 parts Assembling $11,900 Number of parts 7080 parts Packaging $2160 Number of bookshelves 1180 bookshelvesEach bookshelf consists of 6 parts. The direct materials cost per bookshelf is $35. What is the total manufacturing cost per bookshelf? Question 19 options: $18.27 $51.44 $16.44 $53.27
Swiss Furniture Company manufactures bookshelves and uses an activity-based costing system to allocate all manufacturing conversion costs. The following information is provided for the month of May: Activity Estimated Indirect Activity Costs Allocation Base Estimated Quantity of Allocation Base Materials handling $7500 Number of parts 7080 parts Assembling $11,900 Number of parts 7080 parts Packaging $2160 Number of bookshelves 1180 bookshelvesEach bookshelf consists of 6 parts. The direct materials cost per bookshelf is $35. What is the total manufacturing cost per bookshelf? Question 19 options: $18.27 $51.44 $16.44 $53.27
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Swiss Furniture Company manufactures bookshelves and uses an activity-based costing system to allocate all manufacturing conversion costs. The following information is provided for the month of May:
Each bookshelf consists of 6 parts. The direct materials cost per bookshelf is $35.
What is the totalmanufacturing cost per bookshelf?
Activity | Estimated Indirect Activity Costs |
Allocation Base | Estimated Quantity of Allocation Base |
Materials handling | $7500 | Number of parts | 7080 parts |
Assembling | $11,900 | Number of parts | 7080 parts |
Packaging | $2160 | Number of bookshelves | 1180 bookshelves |
What is the total
Question 19 options:
|
$18.27
|
|
$51.44
|
|
$16.44
|
|
$53.27
|
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