Exhibit 17-3 Bird's Eye View Manufactures Three Different Sizes of Bird

Exhibit 17-3 Bird's Eye View manufactures three different sizes of bird cages: small (for finches and canaries) , medium (for cockatiels and small parrots) , and large (for cockatoos and other large parrots) . The company has recently implemented an activity-based costing system. Bird's Eye View has identified five different production activities as well as the best cost driver for each activity. Each activity and driver is listed below, along with the budgeted amount that is associated with each activity for next year.
The following information relates to each size of bird cage and next year's anticipated manufacturing operations:

-Refer to Exhibit 17-3. Under an activity-based costing system, what is the per unit cost for manufacturing overhead of a medium cage (rounded) ?

A) $100
B) $119
C) $120
D) $151

Correct Answer:

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