Ask Question
28 August, 03:23

Swiss Furniture Company manufactures bookshelves and uses an activityminus-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 $ 7 comma 700$7,700 Number of parts 10 comma 43010,430 parts Assembling $ 10 comma 600$10,600 Number of parts 10 comma 43010,430 parts Packaging $ 2 comma 640$2,640 Number of units 1 comma 4901,490 bookshelves Each bookshelf consists of 77 parts. The direct materials cost per bookshelf is $ 28$28. What is the cost of materials handling and assembling per bookshelf? (Round all calculations to the nearest cent.)

+2
Answers (1)
  1. 28 August, 07:11
    0
    Cost of material handling and assembling per book shelf = $135.0811

    Explanation:

    Material Handling = $7,700 for 10,430 parts

    Assembling = $10,600 for 10,430 parts

    Packaging $2,640 for 1,490 bookshelves.

    Each bookshelf consists 77 parts

    We need to calculate material handling and assembling cost per book shelf.

    Material handling cost per part = $7,700/10,430 = 0.738

    Cost for 77 parts = 0.738 X 77 = $56.826

    Assembling costs per part = $10,600/10,430 = $1.0163

    Cost for 77 parts = $1.0163 X 77 = $78.2551

    Cost of material handling and assembling per book shelf = $56.826 + $78.2551 = $135.0811
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Swiss Furniture Company manufactures bookshelves and uses an activityminus-based costing system. The following information is provided for ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers