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Back Porch Company manufactures lawn chairs using an activity-based costing system to allocate all manufacturing conversion c

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Answer #1

Total number of lawn chairs = 20,000 / 8 = 2,500

Total cost of material handling and assembling = $13,000+17,500

Total cost of material handling and assembling = $30,500

Total cost of material handling and assembling for each lawn chair = $30,500 / 2,500 = $12.20

Hence option $12.20 is correct.

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