Beaver Company manufactures coffee tables and uses an activi

Beaver Company manufactures coffee tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each coffee table consists of 40 separate parts totaling $190 in direct materials, and requires 4 hours of machine time to produce. Additional information follows: Activity Materials handling Machining Assembling Packaging Allocation Base Number of parts Machine hours Number of parts Number of finished units Cost Allocation Rate $1.00 per part $4.90 per machine hour $5.00 per part $2.00 per finished unit What is the total manufacturing cost per coffee table? OA. $449.60 O B. $261.60 O C. $196.00 O D. $451.60

Solution

Calculate total manufacturing cost per coffee table :

So answer is b) $261.60

Material handling (1*40)	40
Machining (4*4.90)	19.60
Assembling (5*40)	200
Packaging	2
Total manufacturing cost	261.60