Sleep Tight Company Manufactures Pillows Using an Activity-Based Costing System

question 115

True/False

Sleep Tight Company manufactures pillows using an activity-based costing system. The following information is provided for the month of June:
$\begin{array}{|l|r|r|r|}\hline& \text { Estimated Indirect } & & \text { Estimated Quantity of } \\\text { Activity } & \text { Activity Costs } & \text { Allocation Base } & \text { Allocatinn Base }\\\hline \begin{array}{l}\text { Materials } \\\text { landling }\end{array} & \$ 3,150 & \text { Number of parts } & 4,200 \text { parts }\\\hline \text { Assembling } & \$ 13,860 & \text { Number of parts } & 4,200 \text { parts } \\\hline \text { Packaging } & \$ 2,730 & \text { Number of pillows } & 1,050 \text { paillows }\\\hline\end{array}$

Each pillow consists of 4 parts and the total direct materials cost per pillow is $3.50. There is no direct labor. If Sleep Tight sells pillows for $21.00, they will earn a gross profit of $1.30 per pillow.

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Definitions:

Gametes

Reproductive cells (sperm in males and eggs in females) that unite during sexual reproduction to form a new organism.

Unlinked

Refers to genetic markers, alleles, or genes that are not physically close to each other on the same chromosome and thus do not tend to be inherited together.

Genotype

The genetic makeup of an organism, consisting of all the DNA and genes present within its genome.

Dosage Compensation

Genetic mechanism by which the expression of X-linked genes is made equivalent in XX females and XY males; in mammals this is accomplished by rendering all but one X chromosome inactive.