Stage 2 ABC for Manufacturing: Reassigning Costs to Cost Objects

National Technology, LTD. Has developed the following activity cost information for its manufacturing activities:

Activity	Activity Cost
Machine setup	$65.00 per batch
Movement	15.00 per batch move
	0.10 per pound
Drilling	4.00 per hole
Welding	4.00 per hour
Shaping	25.00 per hour
Assembly	17.00 per hour
Inspection	2.00 per unit

Filling an order for a batch of 50 fireplace inserts that weighed 150 pounds each required the following:

Three batch moves

Two sets of inspections

Drilling five holes in each unit

Completing 80 inches of welds in each unit

Thirty minutes of shaping for each unit

One hour of assembly per unit

Required:

Determine the activity cost of converting the raw materials into 50 fireplace inserts.