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Ace Plastics produces many different kinds of products all in one manufacturing facility. They have identified four activities for their costing system: Materials management allocated

Ace Plastics produces many different kinds of products all in one manufacturing facility. They have identified four activities for their costing system:

Materials management allocated by number of purchase orders

Molding allocated on direct labor hours

Packaging allocated by number of units produced

The activity rates are as follows:

Materials management

$10.00

Per purchase order

Molding

$24.00

Per direct labor hour

Packaging

$0.10

Per unit

Ace received an order for 4,000 plastic toys. The engineering design shows that the order will require $300 of direct material cost, $200 of direct labor cost, will require 3 purchase orders, will need 10 direct labor hours, and will produce 4,000 units of product. What will the full production cost of the order be?

Group of answer choices

$1,170

$1,285

$978

$630

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