Sleep Tight Company Manufactures Pillows Using an Activity-Based Costing System

Multiple Choice

Sleep Tight Company manufactures pillows using an activity-based costing system. The following information is provided for the month of June:

Each pillow consists of 4 parts, and the total direct materials cost per pillow is $3.50.
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What is the total cost of materials handling and assembling for each pillow?

A) $15.40
B) $16.20
C) $18.80
D) $13.20