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Author Question: Traditions Home Accessories Company manufactures pillows using an activity-based costing system to ... (Read 720 times)

ssal

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Traditions Home Accessories Company manufactures pillows using an activity-based costing system to allocate all manufacturing conversion costs. The following information is provided for the month of June:

ActivityEstimated Indirect Activity CostsAllocation BaseEstimated Quantity of Allocation Base
Materials handling $3,000 Number of parts6,000 parts
Assembling $7,200 Number of parts6,000 parts
Packaging $4,000 Number of pillows2,000 pillows

Each pillow consists of 3 parts; the total direct materials cost per pillow is $8.00.

What is the total manufacturing cost per pillow?
◦ $7.10
◦ $15.10
◦ $13.10
◦ $5.10


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Marked as best answer by ssal on Jan 4, 2020

Harbringer

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