Swiss Furniture Company manufactures bookshelves and uses an activity-based costing system. The following information is provided for the month of May: Estimated Indirect Activity Costs $5100 Number of parts 3660 parts $10,300 Number of parts 3660 parts $2250 Number of units 610 bookshelves Each bookshelf consists of 6 parts. The direct materials cost per bookshelf is $40. What is the cost of materials handling and assembling per bookshelf? Activity Materials handling Assembling Packaging $8.36 $25.25 $28.93 $16.89 Estimated Quantity of Allocation Base Allocation Base
Swiss Furniture Company manufactures bookshelves and uses an activity-based costing system. The following information is provided for the month of May: Estimated Indirect Activity Costs $5100 Number of parts 3660 parts $10,300 Number of parts 3660 parts $2250 Number of units 610 bookshelves Each bookshelf consists of 6 parts. The direct materials cost per bookshelf is $40. What is the cost of materials handling and assembling per bookshelf? Activity Materials handling Assembling Packaging $8.36 $25.25 $28.93 $16.89 Estimated Quantity of Allocation Base Allocation Base
Chapter1: Financial Statements And Business Decisions
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Swiss Furniture Company manufactures bookshelves and uses an activity-based costing system. The following
information is provided for the month of May:
Estimated Indirect
Activity Costs
$5100
$10,300
$2250
Each bookshelf consists of 6 parts. The direct materials cost per bookshelf is $40.
What is the cost of materials handling and assembling per bookshelf?
Activity
Materials handling
Assembling
Packaging
$8.36
$25.25
$28.93
$16.89
Estimated Quantity of
Allocation Base
Allocation Base
Number of parts
3660 parts
Number of parts
3660 parts
Number of units 610 bookshelves
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