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

question 74

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.
- There is no direct labor. What is the total manufacturing cost per breadbox?

• A) $17.40
• B) $24.00
• C) $12.40
• D) $26.00

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Definitions:

Deconstructive Listening

An approach to listening that involves critically analyzing and questioning the underlying assumptions and meanings of what is being communicated.

Empower

To provide an individual with the means or confidence to control their life and claim their rights, often by building self-esteem and independence.

Narrative Counselors

Therapists who use narrative therapy, focusing on the stories that individuals create about their lives and exploring ways to rewrite these narratives in more empowering ways.

Exception Questions

Questions asked within therapy to help clients identify times when the problem did not occur, suggesting alternative patterns or solutions.