Questions:
1. Kramer Company manufactures coffee tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each coffee table consists of 20 separate parts totaling $240 in direct materials, and requires 5.0 hours of machine time to produce. Additional information follows:
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Activity
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Allocation Base
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Cost Allocation Rate
|
|
Materials handling
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Number of parts
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$2.00 per part
|
|
Machining
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Machine hours
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$2.75 per machine hour
|
|
Assembling
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Number of parts
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$1.00 per part
|
|
Packaging
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Number of finished units
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$3.00 per finished unit
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2. What is the total manufacturing cost per coffee table?