Question
A company has developed the following activity cost information for its manufacturing activities: Machine setup: $40 per batch Movement: $15 per batch move, .10 per
A company has developed the following activity cost information for its manufacturing activities:
Machine setup: $40 per batch
Movement: $15 per batch move, .10 per pound
Drilling: $3 per hole
Welding: $4 per inch
Shaping: $25 per hour
Assembly: $15 per hour
Inspection: $2 per unit
Filling an order for a batch of 50 fireplace inserts (each insert weighing 150 pounds) required the following:
3 batch moves
2 sets of inspections
Drilling 5 holes in each unit
Completing 50 inches of welds on each unit
30 minutes of shaping for each unit
1 hour of assembly per unit
Determine the activity cost of converting the raw materials into 50 fireplace inserts.
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