Question
Stampout Plastics produces different kinds of products, all in one manufacturing facility. They have identified four activities for their costing system: Materials managementallocated by number
Stampout Plastics produces different kinds of products, all in one manufacturing facility. They have identified four activities for their costing system:
Materials managementallocated by number of purchase orders
Chemical processingallocated on metric tons
Moldingallocated on direct labor hours
Packagingallocated by number of units produced
The activity rates are as follows:
Materials management $12.00 Per purchase order
Chemical processing $7.50 Per metric ton
Molding $24.00 Per direct labor hour
Packaging $0.10 Per unit
Engineering design shows that the order will require direct materials that cost $540; direct labor cost will be $90. 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 3,000 units of product. Calculate the total production of the order. Please show all work!
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