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Two-Stage ABC for Manufacturing: Reassigning Costs to Cost Objectives National Technology, LTD. has developed the following activity cost information for its manufacturing activities: Activity Activity
Two-Stage ABC for Manufacturing: Reassigning Costs to Cost Objectives National Technology, LTD. has developed the following activity cost information for its manufacturing activities: Activity Activity Cost Machine setup $95.00 per batch Movement 8.00 per batch 0.10 per pound Drilling 3.00 per hole Welding 10.00 per inch Shaping 37.00 per hour Assembly 18.00 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 on each unit Thirty minutes of shaping for each unit One hour of assembly per unit Determine the activity cost of converting the raw materials into 50 fireplace inserts. Fireplace Inserts Activity Cost Set-up $ Movement Batch $ Weight Inspection Drilling Welding Shaping Assembly Total $
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