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

question 110

Multiple Choice

Alpha Company manufactures breadboxes and uses an activity-based costing system. The following information is provided for the month of May:  Activity  Estimated Indirect  Activity Costs  Allocation Base  Estimated Quantity of  Allocation Base  Materials handling $3,500 Number of parts 5,000 parts  Assembling $12,000 Number of parts 5,000 parts  Packaging $5,750 Number of bread  boxes 1,250 bread boxes \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 Quantity of } \\\text { Allocation Base }\end{array} \\\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 & \begin{array} { c } \text { Number of bread } \\\text { boxes }\end{array} & 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?

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Definitions:

OCD

Obsessive-Compulsive Disorder, a mental disorder characterized by repetitive, unwanted thoughts (obsessions) and/or compulsive behaviors performed as a ritual.

BDD

Body Dysmorphic Disorder, a mental health condition where a person spends a lot of time worrying about flaws in their appearance, often flaws that are unnoticeable to others.

Co-occurrence

The simultaneous presence of two or more diseases or disorders in the same individual.

Suicidal Ideation

The contemplation or consideration of ending one's own life, often accompanying severe depression or mental distress.

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