Edwards Company manufactures low-cost wooden chairs and uses activity-based costing. The following information is for...

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Accounting

Edwards Company manufactures low-cost wooden chairs and uses activity-based costing. The following information is for the month of March.
Activity Estimated Indirect activity costs Allocation base Estimated quantity of allocation base
Materials handling $ 3,500 Number of parts 5,000 parts
Assembly 12,000 Number of parts 5,000 parts
Packaging 5,750 Number of chairs 1,250 chairs
Each chair consists of 4 parts and the direct materials cost per chair is $7.00.
Based on the information given for Edwards Company, what is the cost of materials handling and assembly per chair?
Multiple Choice
$14.40.
$17.00.
$12.40.
$4.60.
$24.00.

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