Alpha Company Manufactures Breadboxes and Uses an Activity-Based Costing System

question 105

Multiple Choice

Alpha Company manufactures breadboxes and uses an activity-based costing system. The following information is provided for the month of May:
$\begin{array}{|l|r|r|r|}\hline &\text { Estimated Indirect }&&\text { Estimated Quantity of } \\\text { Activity } & \text { Activity Costs } & \text { Allocation Base } & \text { Allocation Base }\\\hline \text { Materials handling } & \$ 3,500 & \text { Number of parts } & 5,000 \text { parts } \\\hline \text { Assembling } & \$ 12,000 & \text { Number of parts } & 5,000 \text { parts } \\\hline \text { Packaging } & \$ 5,750 & \text { Number of bread boxes } & 1,250 \text { bread boxes } \\\hline\end{array}$

Each breadbox consists of 4 parts, and the direct materials cost per breadbox is $7.00.
-What is the cost of materials handling and assembling per breadbox?

• A) $4.60
• B) $17.00
• C) $14.40
• D) $12.40

Recognize the benefits of quick response and tailored sourcing in supply chain management.

Evaluate the effects of forecast accuracy and lead time on supply chain performance.

Understand the relationship between forecast error (standard deviation) and its impact on expected profit and understock.

Grasp the concepts of optimal order quantity and capacity considerations in single and multiple product ordering.

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Definitions:

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Stimulants are substances that increase levels of neural activity in the brain, boosting alertness, attention, and energy, commonly used in both medical and recreational contexts.

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