Beartowne Enterprises uses an activity-based costing system to assign costs in its auto-parts division.

The following units were produced in December with the following information:

Total manufacturing costs for Part 002 is
A)$12,750.
B)$4,000.
C)$10,000.
D)$18,750.

Question

Beartowne Enterprises uses an activity-based costing system to assign costs in its auto-parts division.

The following units were produced in December with the following information:

Total manufacturing costs for Part 002 is
A)$12,750. 
B)$4,000. 
C)$10,000. 
D)$18,750.

Quizplus · Accepted Answer

D)
Direct materials costs = $6,000
Overhead
Materials 500 moves × $5 = 2,500
Assembling 300 hours × $5 = 1,500
Packaging 3,500 units × $2.50 = 8,750
Total = $18,750

Beartowne Enterprises Uses an Activity-Based Costing System to Assign Costs