Question
Stage 2 ABC for Manufacturing: Reassigning Costs to Cost Objectives Regal Products has developed the following activity cost information for its manufacturing activities: Machine setup
Stage 2 ABC for Manufacturing: Reassigning Costs to Cost Objectives Regal Products has developed the following activity cost information for its manufacturing activities:
Machine setup $40.00 per batch
Movement 15.00 per batch move
0.10 per pound
Drilling 2.00 per hole
Welding 3.00 per inch
Shaping 25.00 per hour
Assembly 19.00 per hour Inspection 2.00 per unit
Filling an order for a batch of 50 fireplace inserts (each insert weighing 150 pounds) required the following:
Three batch moves
Two sets of inspections
Drilling five holes in each unit
Completing 70 inches of welds on each unit
Thirty minutes of shaping for each unit
One hour of assembly per unit
Determine the activity cost of converting the raw materials into 50 fireplace inserts.???
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