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:

McClelland's Motivation Theory

A psychological theory that identifies three primary drivers of motivation: need for achievement, need for affiliation, and need for power.

Need for Achievement

The motivation to excel, to achieve in relation to a set of standards, or to compete successfully against challenging criteria.

Control

The power to influence or direct people's behavior or the course of events, often to achieve a desired outcome.

Herzberg's Two-factor Theory

A theory of motivation proposed by Frederick Herzberg that suggests job satisfaction and dissatisfaction arise from two different sets of factors - hygiene factors and motivators.