Spiry Plastics produces different kinds of products, all in one manufacturing facility They have identified four activities for their costing system:

View the four activities.

View the activity rates.

Engineering design shows that the order will require direct materials that cost $$650$; direct labor cost will be $$70.$ 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 $3,800$ units of product. Calculate the total production of the order.

The total production cost of the order is $$

activity rates

$\backslash$table$[[$Materials management $($Per purchase order$),$$$,12\mathrm{.}25],[$Chemical processing $($Per metric ton$),$$$,9\mathrm{.}00],[$Molding $($Per direct labor hour$),$$$,24\mathrm{.}75],[$Packaging $($Per unit$),$$$,0\mathrm{.}12]]$

activities

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