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.)