Swiss Furniture Company manufactures bookshelves and uses an activity-based costing system.The following information is provided for the month of May:

Each bookshelf consists of 4 parts.The direct materials cost per bookshelf is $30.00.
What is the cost of materials handling and assembling per bookshelf?

Question

Swiss Furniture Company manufactures bookshelves and uses an activity-based costing system.The following information is provided for the month of May:

Each bookshelf consists of 4 parts.The direct materials cost per bookshelf is $30.00.
What is the cost of materials handling and assembling per bookshelf?

Quizplus · Accepted Answer

C)
Handling $6400 / 3200 parts × 4 parts = 8.00
Assembling $11,200 / 3200 parts × 4 parts = 14.00
Total 22.00

Swiss Furniture Company Manufactures Bookshelves and Uses an Activity-Based Costing