Swiss Furniture Company makes book shelves, and uses ABC to allocate all manufac

Question

Swiss Furniture Company makes book shelves, and uses ABC to allocate all manufacturing costs. Each Book Shelf consists of 4 parts and 1 package. The direct materials cost per book shelf is $30. What is the total manufacturing post per book shelf? $22 $54.80 $52 $24.80 Total fixed costs for Taylor incorp. are $240, 000. Total costs, including both fixed and variables, are $500, 000. If 125,000 units are produced. The variable cost per unit inc $1.92 per unit $2.08 per unit $4.00 per unit $6.92 per unit

Explanation / Answer

Explanation: B) Direct materials                                 =     30.00

Handling             ($6,400 / 3,200 parts) × 4 parts      =        8.00

Assembling         ($11,200 / 3,200 parts) × 4 parts    =     14.00

Packaging            $2,240 / 800                                =        2.80

Total                                                                                 54.80

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