Back Porch Company Manufactures Lawn Chairs Using an Activity-Based Costing

Multiple Choice

Back Porch Company manufactures lawn chairs using an activity-based costing system to allocate all manufacturing conversion costs. The following information is provided for the month of June: Each lawn chair consists of 8 parts; the total direct materials cost per lawn chair is $10.00.
What is the total cost of materials handling and assembling for each lawn chair?

A) $32.20
B) $19.20
C) $21.20
D) $11.20