Use the information below to answer the following question(s):
Traditions Home Accessories Company manufactures pillows using an activity-based costing system to allocate all manufacturing conversion costs. The following information is provided for the month of June:

Each pillow consists of 3 parts; the total direct materials cost per pillow is $8.00.
-What is the total cost of packaging per pillow?
A) $2.00
B) $10.00
C) $1.50
D) $3.60

Question

Use the information below to answer the following question(s):
Traditions Home Accessories Company manufactures pillows using an activity-based costing system to allocate all manufacturing conversion costs. The following information is provided for the month of June:
 
 Each pillow consists of 3 parts; the total direct materials cost per pillow is $8.00.
-What is the total cost of packaging per pillow?
A) $2.00 
B) $10.00 
C) $1.50 
D) $3.60

Quizplus · Accepted Answer

A) Packaging $4,000/2,000 = $2.00

Use the Information Below to Answer the Following Question(s)