Garrett Company manufactures coffee tables and uses an activity-based costing system to allocate all manufacturing conversion costs.Each coffee table consists of 15 separate parts totaling $125 in direct materials,and requires 2.0 hours of machine time to produce.Additional information follows:

What is the total manufacturing cost per coffee table?

Question

Garrett Company manufactures coffee tables and uses an activity-based costing system to allocate all manufacturing conversion costs.Each coffee table consists of 15 separate parts totaling $125 in direct materials,and requires 2.0 hours of machine time to produce.Additional information follows:

What is the total manufacturing cost per coffee table?

Quizplus · Accepted Answer

A)
Handling 15 parts × 1.75 = 26.25
Machining 2 hrs × 2.00 = 4.00
Assembly 15 parts × .50 = 7.50
Packaging = 2.75
Direct materials = 125.00
Total = 165.50

Garrett Company Manufactures Coffee Tables and Uses an Activity-Based Costing