Skipper Company Manufactures Toy Boats and Uses an Activity-Based Costing

question 78

Multiple Choice

Skipper Company manufactures toy boats and uses an activity-based costing system.The following information is provided for the month of May: $$\begin{array} { | l | c | c | c | } \hline \text { Activity } & \begin{array} { c } \text { Estimated Indirect } \\\text { Activity Costs }\end{array} & \text { Allocation Base } & \begin{array} { c } \text { Estimated } \\\text { Quantity of } \\\text { Allocation Base }\end{array} \\\hline \text { Materials handling } & \$ 3000 & \text { Number of parts } & 3000 \text { parts } \\\hline \text { Assembling } & \$ 5200 & \text { Number of parts } & 3000 \text { parts } \\\hline \text { Packaging } & \$ 5650 & \text { Number of boats } & 1200 \text { boats } \\\hline\end{array}$$ Each boat consists of four parts,and the direct materials cost per boat is $7.21.There is no direct labor.What is the total manufacturing cost per boat? (Round any intermediate calculations and your final answer to the nearest cent.)

• A)$15.63
• B)$22.84
• C)$4.43
• D)$18.13

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