Allen Company manufactures coffee tables and uses an
activity minus− based
costing system. Each coffee table consists of 30 separate parts totaling $210 in direct materials, and requires 6.0 hours of machine time to produce. Additional information follows:
Activity |
Allocation Base |
Cost Allocation Rate |
Materials handling |
Number of parts |
$3.00 per part |
Machining |
Machine hours |
$3.50 per machine hour |
Assembling |
Number of parts |
$1.00 per part |
Packaging |
Number of finished units |
$6.00 per finished unit |
What is the cost of materials handling per coffee table?
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