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All Things Auto uses an activity-based costing system to assign costs in its auto - parts division. Activity Materials Assembling Packaging Est. Indirect Activity Costs
All Things Auto uses an activity-based costing system to assign costs in its auto - parts division. Activity Materials Assembling Packaging Est. Indirect Activity Costs $60,000 $185,000 $50,000 Allocation base Material moves Direct labor hours # of finished units Cost allocation rate $7.00/move $6.00/dir. labor hour $3.50/finished unit The following units were produced in December with the following information: Part # # Produced Materials Costs Part 001 1,050 $1,500 Part 002 2,500 $4,000 Part 003 3,950 $10,000 # Moves 500 200 2,200 Dir. Labor Hrs. 100 500 1,150 Total manufacturing costs for Part 003 is A. $36,125 B. $46,125 OC. $22,300 D. $32,300
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