Skipper Company manufactures toy boats and uses an activity-based costing system. The following information is...
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Accounting
Skipper Company manufactures toy boats and uses an activity-based costing system. The following information is provided for the month of May:
Activity
Estimated Indirect
Activity Costs
Allocation Base
Estimated
Quantity of
Allocation Base
Materials handling
$3,000
Number of parts
5,000 parts
Assembling
$4,800
Number of parts
5,000 parts
Packaging
$5,650
Number of boats
1,150 boats
Each boat consists of four parts, and the direct materials cost per boat is $7.47. There is no direct labor. What is the total manufacturing cost per boat? (Round any intermediate calculations and your final answer to the nearest cent.)
$11.15
$18.62
$12.64
$13.71
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