Question
Ignore any calculations from prior questions. Information pertaining to Radakovich Corporations estimated manufacturing overhead for 2022 is given below. Radakovich uses an activity-based costing (ABC)
Ignore any calculations from prior questions. Information pertaining to Radakovich Corporations estimated manufacturing overhead for 2022 is given below. Radakovich uses an activity-based costing (ABC) system to assign manufacturing overhead to products. Among its products is G12B, that the company only manufactures for special orders. BobCo Inc. has requested a bid on 1,000 units of G12B. Radakovichs production managers estimate the order to require 200 machine-hours, 4060 parts, and 300 inspection-hours. This product's direct materials are estimated to cost $50.00 per unit and direct labor is estimated at $60.00 per unit.
Activity | activity rate | cost driver |
assembly | $30.00 | Number of Machine Hours |
Material Handling | $2.00 | Number of parts |
Inspection | $75.00 | number of inspection hours |
Activity Rates are quoted per unit of cost driver activity. Calculate the total estimated manufacturing cost for BobCos order of G12B. (Round to the nearest $0.01)
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