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

question 106

Multiple Choice

Sleep Tight Company manufactures pillows using an activity-based costing system. The following information is provided for the month of June: Each pillow consists of 4 parts and the total direct materials cost per pillow is $3.50. There is no direct labor. What is the total manufacturing cost per pillow?

• A)$16.20
• B)$22.30
• C)$18.50
• D)$26.50

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Definitions:

Insomnia

A condition that disrupts normal sleep patterns, making it hard to fall asleep, remain asleep, or achieve restful sleep.

Air Passages

The routes through which air travels in the body, including the nose, throat, and tubes leading to the lungs.

Alpha Rhythm

A pattern of brain wave activity characterized by 8 to 12 hertz frequencies, commonly observed in relaxed, wakeful states, especially in adults with closed eyes.

Theta Waves

Slow brain waves produced during the hypnagogic state.