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Regal Corp. produces replica royal crowns. It makes two different types - the Elizabeth Tudor and the Mary Stuart. Each requires different inputs and levels
Regal Corp. produces replica royal crowns. It makes two different types the Elizabeth Tudor and the Mary Stuart. Each requires different inputs and levels of setup Below is
the information for each type of item:
Direct material costs are as follows $ per unit for the Elizabeth Tudor model and $ for the Mary Stuart model.
Direct labor costs are $ per hour. It is estimated that each Elizabeth Tudor model unit takes hours to make and each Mary Stuart model takes hours to make.
Factory rent, taxes, utilities, and insurance is a total of $ per year. The company would like to divide this by units produced.
Machine setups cost $ per setup There are setups for the Elizabeth Tudor line and for the Mary Stuart line.
Machine testing and calibration cost is $ per event. There were events for the Elizabeth Tudor line and events for the Mary $ Stuart line.
Maintenance and cleaning is $ per year. The company would like to divide this by units produced.
A total of units of the Elizabeth Tudor were made and units of the Mary Stuart were made.
The Elizabeth Tudor line would use machine hours and the Mary Stuart line would use machine hours. Prior to using activity based costing the company used
to divide costs according to machine hours.
Calculate the total cost that should be allocated to the Elizabeth crow line, using activity based costing. Round your answer to the nearest dollar.
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