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

question 123

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:

Encourage Innovation

The act of motivating and promoting creative thinking and the development of new ideas, products, or ways of doing something.

Organizational Culture

Organizational culture consists of the values, beliefs, behaviors, and norms that characterize an organization and shape its members' actions and interactions.

Performance

The act of carrying out or accomplishing an action, task, or function, often measured against pre-determined standards or objectives.

Corporate Culture

The collective principles, convictions, and habits that form the sociocultural and psychological backdrop of a corporate entity.