Calculate the total dollar amount of supervisions cost

Reference no: EM131034084

Blox ($) Shapez ($)

Direct material per unit 10 23

Direct labour per unit 19 32

Manufacturing overhead per unit 7 10

Selling & Admin. expenses per unit 17 31

The company is investigating the use of an Activity-based costing system and has identified two principal activities associated with manufacturing overheads: Supervision and Quality Inspections. In the last quarter, Supervision costs amounted to $105,481 and are driven by the number of Supervision hours; Quality inspection costs totaled $115,173 and are driven by the number of inspections.

Each Blox requires 45 minutes of supervision time and a single quality inspection. Each Shapez requires one hour of supervision time, and every second Shapez goes through a quality inspection.

The Perth plant produced and sold 69,574 Blox and 44,275 Shapez in the last quarter, at a selling price of $65 for Blox and $135 for Shapez.

Calculate the total dollar amount of Supervisions cost that would have been allocated to the Shapez product line, if activity-based costing had been used in the last quarter. (Round your answer to the nearest dollar.)

Reference no: EM131034084

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