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docker41 [41]
3 years ago
8

Skipper Company manufactures toy boats and uses an activitybased costing system. The following information is provided for the m

onth of​ May: Activity Estimated Indirect Activity Costs Allocation Base Estimated Quantity of Allocation Base Materials handling Number of parts parts Assembling Number of parts parts Packaging Number of boats boats Each boat consists of four​ parts, and the direct materials cost per boat is . There is no direct labor. What is the total manufacturing cost per​ boat? (Round any intermediate calculations and your final answer to the nearest​ cent.)
Business
1 answer:
zalisa [80]3 years ago
8 0

Answer:

$ 22.97

Explanation:

Calculation for the total manufacturing cost per boat

First step is to Calculate the Activity rates

Activity Cost Pool Activity driver Overhead Cost (A) Expected Activity (B) Activity rate (A/B)

Materials handling Number of Part

$ 3,300÷ 3000 =$ 1.10 Per Part

Assembling Number of Part

$ 4,800÷3000 =$ 1.60 Per Part

Packaging Number of Boat

$ 6,000÷ 1300 =$ 4.62 Per Boat

Second step is to Calculate the Cost assigned to Boat

Activity name Activity Rates Activity ABC Cost

(A) (B) (A x B)

Materials handling

$ 1.10 × 4.00=$ 4.40

Assembling

$ 1.60 × 4.00 =$ 6.40

Packaging

$ 4.62 × 1.00 = $ 4.62

Total Overheads assigned per boat $ 15.42

($4.40+$6.40+$4.62)

Last step is to Calculate for the total manufacturing cost per boat

Boat

Direct material $ 7.55

Direct labor $0

Overheads $15.42

Total Cost per unit $ 22.97

($7.55+$15.42)

Therefore the total manufacturing cost per boat is $ 22.97

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4 0
3 years ago
Read 2 more answers
Norton Manufacturing expects to produce 2,900 units in January and 3,600 units in February. Norton budgets $20 per unit for dire
storchak [24]

Answer:

Purchases= $26,550

Explanation:

Giving the following information:

Production:

January= 2,900 units

February= 3,600 units

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