Skipper Company manufactures toy boats and uses an activity-based costing system. The following information is...
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Accounting
Skipper Company manufactures toy boats 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 | $3,000 | Number of parts | 5,000 parts |
Assembling | $4,800 | Number of parts | 5,000 parts |
Packaging | $5,650 | Number of boats | 1,150 boats |
Each boat consists of four parts, and the direct materials cost per boat is $7.47. There is no direct labor. What is the total manufacturing cost per boat? (Round any intermediate calculations and your final answer to the nearest cent.)
$11.15 | ||
$18.62 | ||
$12.64 | ||
$13.71 |
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