Question

Cozy Nights Industries manufactures down-filled comforters and uses activity-based costing. The following information is provided for September.
Activity Estimated indirect activity costs Allocation base Estimated quantity allocation base
Materials handling $12,600 Number of parts 4,200 parts
Assembly 55,440 Number of parts 4,200 parts
Packaging 10,920 Number of parts 1,050 comforters

Each comforter consists of 4 parts and the direct materials cost per comforter is $14.00.Based on the information given for Cozy Nights Industries, what is the total manufacturing cost per comforter?

a. $78.80.
b. $64.80.
c. $3.00.
d. $89.20.
d. $30.20.

Answer 1

Answer:

the total manufacturing cost per comforter is $120.4

Explanation:

The computation of the total manufacturig cost per comfortor is as follows:

= Cost × activity consumed ÷ Total activity

For material handling

= $12,600 × 4 ÷ 4,200

= $12

For Assembly

= $55,440 × 4 ÷ 4,200

= $52.8

For packaging

= $10,920 × 4 ÷ 1,050

= $41.6

And, the direct material cost is $14

So, the total manufacturing cost per comforter is

= $12 + $52.8 + $41.6 + $14

= $120.4

Hence, the total manufacturing cost per comforter is $120.4

This is the answer but the same is not provided in the given options