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2. Kramer Company manufactures coffee tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each coffee table
consists of 20 separate parts totaling $240 in direct materials and requires 5.0 hours of machine time to produce. Additional information follows:
Activity
Allocation Base
Cost Allocation Rate
Materials handling
Number of parts
$2.00 per part
Machining
Machine hours
$2.75 per machine hour
Assembling
Number of parts
$1.00 per part
Packaging
Number of finished units
$3.00 per finished unit
What is the total manufacturing cost per coffee table?