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QUESTION 2 Stampout Plastics produces different kinds of products, all in one manufacturing facility. They have identified four activities for their costing system: Materials management-allocated
QUESTION 2 Stampout Plastics produces 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 Chemical processing-allocated on metric tons Molding-allocated on direct labor hours Packaging-allocated by number of units produced The activity rates are as follows: Materials management $12.00 Per purchase order Chemical processing $7.50 Per metric ton Molding $24.00 Per direct labor hour Packaging $0.10 Per unit . Engineering design shows that the order will require direct materials that cost $540; direct labor cost will be $90. The order will also require four purchase orders to be placed, use two metric tons of chemical base, and need eight direct labor hours. The size of the order is to produce 3,000 units of product Calculate the total production of the order that includes (Direct materials, direct labor, and overhead cost)
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