Beartowne Enterprises uses an activityminus-based costing system to assign costs in its autominus-parts division.
| Activity |
Est. Indirect Activity Costs |
Allocation base |
Cost allocation rate |
| Materials |
$60,000 |
Material moves |
$5.00/move |
| Assembling |
$175,000 |
Direct labor hours |
$5.00/dir. labor hour |
| Packaging |
$70,000 |
# of finished units |
$2.50/finished unit |
The following units were produced in December with the followinginformation:
| Part # |
# Produced |
Materials Costs |
# Moves |
Dir. Labor Hours. |
| Part 001 |
1,250 |
$2,500 |
100 |
200 |
| Part 002 |
3,500 |
$6,000 |
500 |
300 |
| Part 003 |
3,750 |
$7,000 |
2,500 |
1,250 |
Total manufacturing costs for Part 003 is
A. $35,125.
B. $25,750.
C. $18,750.
D. $28,125.