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.
If the cost to purchase the same pillow from a supplier is $17.00, what should Traditions Home Accessories do to maximize profits?
◦ Purchase the pillow from the supplier.
◦ Continue to manufacture the pillow.
◦ Close down the business.
◦ Since the cost to manufacture the pillow is also $17.00, the company would make the same profit whether it bought the pillow or manufactured it.
Organization of the nervous system.
Saturn’s Ring System
Respirator decision logic based on the EPA method. It is very important to know when to use supplied ...
Steps in the regulation of p53 levels and activity
Solar System
Cardiac conduction system