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The capital bOP Technologies Manufacturing manufactures small parts and uses an activity-based costing system. The following parts were produced in October with the following information:
The capital bOP Technologies Manufacturing manufactures small parts and uses an activity-based costing system. The following parts were produced in October with the following information: Activity Est. Indirect Activity Costs Allocation base Cost allocation rate Materials $75,000 Material moves $4.00/move Assembling $251,000 Direct labor hours $9.00/dir. labor hour Packaging $90,000 # of finished units $3.00/finished unit Part # Produced Materials Costs # Moves Dir. Labor Hrs. 2,250 $3,100 1,000 350 B 4,000 $5,500 1,700 425 4,550 $7,000 2,700 1,700 Total packaging fees for all three parts is * $18,750 * $43,200 * $32,400 * $16,200udgeting model considers both profitability and the time value of money. * accounting rate of return * return on investment * payback * net present value
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