Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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!

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Cost Accounting

Authors: Edward J. Vanderbeck

15th Edition

978-0840037039, 0840037031

More Books

Students also viewed these Accounting questions