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

question 51

Multiple Choice

Alpha Company manufactures breadboxes and uses an activity-based costing system.The following information is provided for the month of May: $$\begin{array} { | l | r | r | r | } \hline& & & \text { Estimated } \\ & \text { Estimated Indirect } & & \text { Quantity of } \\\text { Activity } &\text { Activity Costs } & \text { Allocation Base } & \text { Allocation Base }\\\hline \text { Materials handling } & \$ 3,400 & \text { Number of parts } & 3,000 \text { parts } \\\hline \text { Assembling } & \$ 4,800 & \text { Number of parts } & 3,000 \text { parts } \\\hline \text { Packaging } & \$ 5,700 & \begin{array} { r } \text { Number of bread } \\\text { boxes }\end{array} & 1,300 \text { bread boxes } \\\hline\end{array}$$ Each breadbox consists of four parts,and the direct materials cost per breadbox is $7.80.There is no direct labor.What is the total manufacturing cost per breadbox? (Round any intermediate calculations and your final answer to the nearest cent. )

• A)$15.32
• B)$23.12
• C)$4.93
• D)$18.73

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Definitions:

Consideration

In contract law, something of value exchanged between parties that is necessary for a valid contract.

Offeror's Death

refers to the termination of an offer in contract law due to the death of the person making the offer before it is accepted.

Automatically Terminates

A clause in an agreement that causes the contract to end without the need for notice, upon the occurrence of specific conditions.

Contract Formation

The process by which parties reach an agreement on the terms of a contract, creating mutual obligations enforceable by law.