Question

Swiss Furniture Company manufactures bookshelves and uses an activityminusbased 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 $ 7 comma 700 Number of parts 7 comma 350 parts Assembling $ 10 comma 500 Number of parts 7 comma 350 parts Packaging $ 2 comma 410 Number of units 1 comma 470 bookshelves Each bookshelf consists of 5 parts. The direct materials cost per bookshelf is $ 39. What is the cost of materials handling and assembling per​ bookshelf? (Round all calculations to the nearest​ cent.)

Answer 1

Answer:

$12.40

Explanation:

Activity           Estimated Indirect       Allocation Base      Estimated Q. of

                      Activity Costs                                               Allocation Base

Materials handling $7,700                Number of parts     7,350 parts

Assembling          $10,500                Number of parts     7,350 parts

Packaging              $2,410                 Number of units     1,470 bookshelves

The direct materials cost per bookshelf is $39. What is the cost of materials handling and assembling per​ bookshelf?

materials handling cost per part = $7,700 / 7,350 parts = $1.05

assembling cost per part = $10,500 / 7,350 parts = $1.43

total cost per part = $2.48

cost per bookshelf = 5 x $2.48 = $12.40