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

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Sleep Tight Company manufactures pillows using an activity-based costing system. The following information is provided for the month of June:
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. There is no direct labor. If Sleep Tight sells pillows for $21.00, they will earn a gross profit of $1.30 per pillow. Each pillow consists of 4 parts and the total direct materials cost per pillow is $3.50. There is no direct labor. If Sleep Tight sells pillows for $21.00, they will earn a gross profit of $1.30 per pillow.

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