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Author Question: Traditions Home Accessories Company manufactures pillows using an activity-based costing system to ... (Read 64 times)

yoroshambo

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on: Jan 4, 2020
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.

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.
Managerial Accounting, Canadian Edition ¦ Braun, Tietz, Pyper ¦ 2nd Edition
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Marked as best answer by yoroshambo on Jan 4, 2020

dudman123

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Reply #1 on: Jan 4, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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yoroshambo

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Reply 2 on: Jan 4, 2020
Great answer, keep it coming :)

juliaf

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Reply 3 on: Yesterday
Wow, this really help

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