Answered

Discover the answers you need at Westonci.ca, a dynamic Q&A platform where knowledge is shared freely by a community of experts. Discover a wealth of knowledge from professionals across various disciplines on our user-friendly Q&A platform. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.

Cozy Nights Industries manufactures down-filled comforters and uses activity-based costing. The following information is provided for September.

Activity Estimated indirect activity costs Allocation base Estimated quantity allocation base
Materials handling $12,600 Number of parts 4,200 parts
Assembly 55,440 Number of parts 4,200 parts
Packaging 10,920 Number of parts 1,050 comforters

Each comforter consists of 4 parts and the direct materials cost per comforter is $14.00.Based on the information given for Cozy Nights Industries, what is the total manufacturing cost per comforter?

a. $78.80.
b. $64.80.
c. $3.00.
d. $89.20.
d. $30.20.

Sagot :

Answer:

the total manufacturing cost per comforter is $120.4

Explanation:

The computation of the total manufacturig cost per comfortor is as follows:

= Cost × activity consumed ÷ Total activity

For material handling

= $12,600 × 4 ÷ 4,200

= $12

For Assembly

= $55,440 × 4 ÷ 4,200

= $52.8

For packaging

= $10,920 × 4 ÷ 1,050

= $41.6

And, the direct material cost is $14

So, the total manufacturing cost per comforter is

= $12 + $52.8 + $41.6 + $14

= $120.4

Hence, the total manufacturing cost per comforter is $120.4

This is the answer but the same is not provided in the given options

anthougo

Cozy Nights Industries' total manufacturing cost per comforter is d. $89.20.

Data and Calculations:

Activity    Estimated indirect activity costs Allocation base  Estimated

                                                                                                   quantity  

Materials handling                 $12,600   Number of parts      4,200 parts

Assembly                                 55,440   Number of parts     4,200 parts

Packaging                                10,920   Number of parts     1,050 comforters

Overhead Rates:

Materials handling = $3 ($12,600/4,200) per part

Assembly = $13.20 ($55,440/4,200) per part

Packaging = $10.40 ($10,920/1,050) per comforter

Overhead cost:

Materials handling = $12 ($3 x 4)

Assembly = $52.80 ($13.20 x 4)

Packaging = $10.40 ($10.40 x 1)

Total overhead cost = $75.20

Total manufacturing cost per comforter:

Total overhead cost = $75.20

Direct materials cost = $14.00

Total manufacturing cost = $89.20

Learn more: https://brainly.com/question/24171150

We hope our answers were useful. Return anytime for more information and answers to any other questions you have. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.