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 packaging per lawn chair?

A) $13.00
B) $11.20
C) $ 8.00
D) $ 3.00