Collins Sheet Metal Shop is considering adding a metal dry box for rafts to its product mix.

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Collins Sheet Metal Shop is considering adding a metal dry box for rafts to its product mix. The metal box requires 20 square meters of 0.35 cm. aluminum. The cost of the aluminum sheet metal is £5 per square meter. Direct labor on the box is estimated to be five hours at £10/hour. The following activities, the following cost drivers and application rates are expected to be used in making the new box:

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Collins Sheet Metal is making 10 of these dry boxes. What is the expected cost per dry box?

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Management Accounting In A Dynamic Environment

ISBN: 9780415839020

1st Edition

Authors: Cheryl S McWatters, Jerold L Zimmerman

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