Alpha Company manufactures breadboxes and uses an activity-based costing system.

Question

Alpha Company manufactures breadboxes and uses an activity-based costing system. The following information is provided for the month of May Estimated Quantity of Allocation Base 3,000 parts 3,000 parts Estimated Indirect Activity Materials handling Assembling Activity CostsAllocation Base $3,400 $4,800 Number of parts Number of parts Number of bread boxes Packaging $5,700 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.) O A. $15.32 B. $18.73 O C. $4.93 O D. $23.12

Explanation / Answer

Calculate total manufacturing cost per breadbox

So answer is b) $18.73

Material handling (3400/3000*4) 4.53 Assembling (4800/3000*4) 6.40 Direct material 7.80 Total manufacturing cost per breadbox 18.73

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