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Conform Foam Products produces different kinds of industrial packing materials, all in one manufacturing facility. They have identified four activities for their costing system: Materials

Conform Foam Products produces different kinds of industrial packing materials, all in one manufacturing facility. They have identified four activities for their costing system:

Materials managementallocated by number of purchase orders

Chemical processingallocated on metric tons

Moldingallocated on direct labor hours

Packagingallocated by number of units produced

The activity rates are as follows:

Materials management $ 10.00 Per purchase order
Chemical processing $ 6.50 Per metric ton
Molding $ 23.50 Per direct labor hour
Packaging $ 0.25 Per unit

Engineering design shows that the order will require direct material worth $775, direct labor cost being $125, require 5 purchase orders to be placed, use 6 metric tons of chemical base, need 12 direct labor hours. The size of the order is to produce 5,000 units of product

Required:

(1) Calculate the overhead cost of the order.

(2) Calculate total cost of production of the order.

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