Stage 2 ABC for Manufacturing: Reassigning Costs to Cost Objectives (LO2)

National Technology, LTD. has developed the following activity cost information for its manufacturing activities:

Activity Activity Cost Machineisetup’............

MOVEMENT esoec cme oe ee Bid iae|; . -e cteoaocn eenae Welding Shaping NSSOMDIV pein costars Sindetne Inspection..... beetn oker eT A

$60.00 per batch 15.00 per batch move 0.10 per pound 3.00 per hole 4.00 per inch 25.00 per hour 18.00 per hour 2.00 per unit Filling an order for a batch of 50 fireplace inserts that weighed 150 pounds each required the following:
e¢ Three batch moves ¢ Two sets of inspections ¢ Drilling five holes in each unit * Completing 80 inches of welds on each unit ¢ Thirty minutes of shaping for each unit ¢ One hour of assembly per unit Required Determine the activity cost of converting the raw materials into 50 fireplace inserts.