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