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The Hasbron Toy Company makes a variety of dolls at its operation in Munich. Its manufacturing process is highly automated. A recently installed ABC system
The Hasbron Toy Company makes a variety of dolls at its operation in Munich. Its manufacturing process is highly automated. A recently installed ABC system has four activity centers: (Click the icon to view the activity center data.) Two dolls are called "Beauty" and "Beast." They require 0.10 and 0.80 kg of materials, respectively, at a materials cost of 0.85 for Beauty and 4.40 for Beast. One computer-controlled assembly line makes all dolls. When a production run of a different doll is started, a setup procedure is required to reprogram the computers and make other changes in the process. Normally, 1,400 Beauty dolls are produced per setup, but for Beast dolls, only 280 are produced per setup. Products are packed and shipped separately so a request from a customer for, say, three different products is considered three different orders. Suppose the gift shop at the Munich Toy Museum (Spielzeugmuseum)just placed an order for 80 Beauty dolls and 40 Beast dolls. Read the requirements. Requirement 1. Compute the cost of the products shipped to the Munich Toy Museum gift shop. (Round to two decimal places.) Beauty Dolls Beast Dolls - X Data Table Unit costs Cost per Driver Unit 0.70 per kg Activity Center Cost Driver Materials receiving and handling Kilograms of materials Production setup Number of setups Cutting, sewing, and assembly Number of units Packing and shipping Number of orders 70 per setup 0.40 per unit Total unit cost 7 per order x Number of units Total cost of dolls Print Done Total cost of order
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