Activity-based costing, Activity-Based Costing

Activity-based costing

Reference no: EM13508577

Activity-Based Costing
Demon Manufacturing Company has developed the following activity cost information for its manufacturing activities:
Assembly $30 per hour
Drilling $8 per hole
Inspection $4 per inspection
Machine setup $400 per batch
Movement $30 per batch plus$0.20 per lb.
Shaping $50 per hour
Welding $10 per inch
Filling a batch order for 90units with a combined weight of 400 pounds required:

Three sets of inspections per unit
Drilling four holes in each unit
Completing 20 inches of welds on each unit
0.6 hour of shaping for each unit
One hour of assembly per unit

Calculate the total cost to produce a batch of 90 units.

Reference no: EM13508577

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