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 4 parts.The direct materials cost per bookshelf is $30.00.
What is the total manufacturing cost per bookshelf?

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 4 parts.The direct materials cost per bookshelf is $30.00.
What is the total manufacturing cost per bookshelf?

Quizplus · Accepted Answer

C)
Direct materials = 30.00
Handling ($6,400 / 3,200 parts)× 4 parts = 8.00
Assembling ($11,200 / 3,200 parts)× 4 parts = 14.00
Packaging $2,240 / 800 = 2.80
Total 54.80

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