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Skipper Company manufactures toy boats and uses an activity-based costing system. The following information is provided for the month of May: Estimated Indirect Activity Costs
Skipper Company manufactures toy boats and uses an activity-based costing system. The following information is provided for the month of May: Estimated Indirect Activity Costs Activity Materials handling Assembling Packaging $3,100 Estimated Quantity of Allocation Base 4,000 parts 4,000 parts 1,150 boats Allocation Base Number of parts Number of parts Number of boats $5,200 $6,000 Each boat consists of four parts, and the direct materials cost per boat is $7.83. 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.) O A. $21.37 O B. $16.15 O c. $13.54 OD. $3.45
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