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:
Activity | Estimated Indirect Activity Costs | Allocation Base | Estimated Quantity of Allocation Base |
Materials handling | $3,000 | Number of parts | 6,000 parts |
Assembling | $7,200 | Number of parts | 6,000 parts |
Packaging | $4,000 | Number of pillows | 2,000 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