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2. Kramer Company manufactures coffee tables and uses an activity based costing system to allocate all manufacturing conversion costs. Each coffee table consists of 20 separate parts totaling $240 in direct materials, and requires 5.0 hours of machine time to produce. Additional information follows:
|
Activity |
Allocation Base |
Cost Allocation Rate |
|
Materials handling |
Number of parts |
$2.00 per part |
|
Machining |
Machine hours |
$2.75 per machine hour |
|
Assembling |
Number of parts |
$1.00 per part |
|
Packaging |
Number of finished units |
$3.00 per finished unit |
What is the total manufacturing cost per coffee table?