Question #6:

Birds and Such, Inc. manufactures birdhouses 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	$ 3,500	Number of parts	5,000 parts
Assembling	$12,000	Number of parts	5,000 parts
Packaging	$5,750	Number of birdhouses	1,250 birdhouses

Each breadbox consists of 4 parts, and the direct materials cost per birdhouse is $7.00.

What is the cost of materials handling and assembling per breadbox?