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Exercise 10-44 Assigning Cost of Capacity (LO 10-5,6) Curt's Casting manufactures metal parts in a large manufacturing facility Curf's customers order 69,000 tons of castings
Exercise 10-44 Assigning Cost of Capacity (LO 10-5,6) Curt's Casting manufactures metal parts in a large manufacturing facility Curf's customers order 69,000 tons of castings each quarter. The facility has a practical capacity of 118,000 tons. Curt leased the current facility because it was more convenient than another new facility that had a capacity of 69,000 tons. The annual cost of the facility is $354,000. The variable cost of a casting is $4 Required: a. What cost per casting should the cost system report? Answer is complete but not entirely correct. b. Given your answer to requirement (a), what is the cost of excess capacity? 3Answer is complete but not entirely correct. 8:00
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