Reference no: EM132801776

Question - Conform Foam Products produces different kinds of industrial packing materials, all in one manufacturing facility. They have identified four activities for their costing system:

Materials management-allocated by number of purchase orders

Chemical processing-allocated on metric tons

Molding-allocated on direct labor hours

Packaging-allocated by number of units produced

The activity rates are as follows:

Materials management $10.00 Per purchase order

Chemical processing 6.50 Per metric ton

Molding 23.50 Per direct labor hour

Packaging 0.25 Per unit

Engineering design shows that the order will require direct materials of $775, direct labor cost of $125, 5 purchase orders, 6 metric tons of chemical base, and 12 direct labor hours. The size of the order to produce is 5,000 units of product.

Required -

(1) Calculate the overhead cost of the order.

(2) Calculate total cost of the order.