Alpha Company manufactures breadboxes and uses an activity-based costing system
The following information is provided for the month of May:
Activity Estimated Indirect
Activity Costs Allocation Base Estimated
Quantity of
Allocation Base
Materials handling $3,400 Number of parts 3,000 parts
Assembling $4,800 Number of parts 3,000 parts
Packaging $5,700 Number of bread
boxes 1,300 bread boxes
Each breadbox consists of four parts, and the direct materials cost per breadbox is $7.80. There is no direct labor. What is the total manufacturing cost per breadbox? (Round any intermediate calculations and your final answer to the nearest cent.)
A) $15.32
B) $23.12
C) $4.93
D) $18.73
B .B)
Calculation of total manufacturing cost per bread box:
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