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

question 76

Multiple Choice

Alpha Company manufactures breadboxes and uses an activity-based costing system. The following information is provided for the month of May: 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:

Cash Over and Short

An accounting line item that indicates the discrepancies between the amount of cash in the register and the amount of cash according to the accounting records.

Journal Entry

A record of financial transactions in the accounting system, showing accounts affected, amounts, and whether those accounts are debited or credited.

Petty Cash Account

A modest sum of money maintained readily available for covering various minor outlays instantly.

Establishing

The process of setting up or founding something, such as a new business, system, or set of rules.