Jan 2024 Update: Alpha Company manufactures breadboxes and uses an activity-based costing system to allocate all manufacturing conversion costs. The following information is

Question

Alpha Company manufactures breadboxes and uses an activity-based costing system to allocate all manufacturing conversion costs. The following information is provided for the month of May: Activity Estd Indirect Activity Costs Allocation Base | Estimated Allocation Base Materials handling $ 3,500 Number of parts 5,000 parts Assembling 12,000 Number of parts 5,000 parts Packaging 5,750 | Number of bread boxes 1,250 bread boxes

Asked By CelestialDreamer51 at 30 Jan 2024

Answered By Expert

Stuart

Expert · 1.5k answers · 1k people helped

Total manufacturing cost per breadbox

= (3,500/5,000)*4 + (12,000/5,000)*4 + (5,750/1,250)*1 + 9

= 2.80 + 9.60 + 4.6 + 9

= $26

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