Hummingbird Manufacturing manufactures small parts and uses an activity-based costing system.

The following parts were produced in October with the following information:

Total unit cost for part B is closest to (rounded to two decimal places)
A)$4.71.
B)$4.64.
C)$7.63.
D)$3.09.

Question

Hummingbird Manufacturing manufactures small parts and uses an activity-based costing system.

The following parts were produced in October with the following information:

Total unit cost for part B is closest to (rounded to two decimal places)
A)$4.71. 
B)$4.64. 
C)$7.63. 
D)$3.09.

Quizplus · Accepted Answer

A)
Direct materials costs = $6,500
Overhead
Materials 1,700 moves × $3 = 5,100
Assembling 325 hour × $10 = 3,250
Packaging 4,000 units × $1.00 = 4,000
Total = $18,850 / 4000 = 4.71

Hummingbird Manufacturing Manufactures Small Parts and Uses an Activity-Based Costing