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I am reposting this question because I do not know whether it is being answered. Please I need your help asap. Thanks. alpha company manufactures breadboxes and uses ... Question 27) 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 $3,500 Number of parts 5,000 parts Assembling $12,000 Number of parts 5,000 parts Packaging $5,750 Number of bread boxes 1,250 bread boxes Each breadbox consists of 4 parts, and the direct materials cost per breadbox is $7.00. There is no direct labor. What is the total manufacturing cost per breadbox? A) $17.40 B) $24.00 C) $12.40 D) $26.00 Comment

Explanation / Answer

B) $24.00 Statement showing computations Activity Cost pool Amount No of Activity Costs per activity Materials handling           3,500.00                  5,000.00                                      0.70 Assembling         12,000.00                  5,000.00                                      2.40 Packaging           5,750.00                  1,250.00                                      4.60 Statement showing computations Particulars Amount Direct Materials Costs                   7.00 Materials handling = 4*.70                   2.80 Assembling = 4*2.40                   9.60 Packaging                   4.60 total manufacturing cost per breadbox                 24.00

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