Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 8 Ace Plastics produces many different kinds of products all in one manufacturing facility. They have identified four activities for their costing system:

image text in transcribed

Question 8 Ace Plastics produces many 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 Chemical processing Molding Packaging $12.00 Per purchase order $7.50 Per metric ton $24.00 $0.10 Per direct labor hour Per unit 1 2 3 4 5 6 7 Ace received an order for 3,000 plastic toys. The engineering design shows that the order will require $540 of direct material cost in total, $90 of direct labor cost, will require 4 purchase orders, will use 2 metric tons of chemical base, will need 8 direct labor hours, and will produce 3.000 units of product. What will the full production cost of the order be? Show all steps of calculation. Your answer: Font Size BIU A - 2 MacBook Air Vi

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Creating Value in a Dynamic Business Environment

Authors: Ronald W. Hilton

9th edition

78110912, 978-0078110917

More Books

Students also viewed these Accounting questions

Question

4 What is specific in constructivist approach to group coaching?

Answered: 1 week ago