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Swiss Furniture Company manufactures bookshelves and uses an activity-based costing system to allocate all manufacturing conversion costs. The company incurs no direct labor costs. The
Swiss Furniture Company manufactures bookshelves and uses an activity-based costing system to allocate all manufacturing conversion costs. The company incurs no direct labor costs. The following information is provided for the month of May. Activity Materials handling Assembling Packaging Estimated Indirect Activity Costs $5,400 $11,500 $2 180 Allocation Base Number of parts Number of parts Number of bookshelves Estimated Quantity of Allocation Base 5,840 parts 5,840 parts 730 bookshelves Each bookshelf consists of 8 parts. The direct materials cost per bookshelf is $23. What is the total manufacturing cost per bookshelf? (Round all calculations to the nearest cent) O A. $46.15 O B. $23.15 Oc. $49 14 OD. $26.14
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