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Determine the activity cost of converting the raw materials

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Reference no: EM132054663

Question - Reassigning Costs to Cost Objectives

Regal Products has developed the following activity cost information for its manufacturing activities:

Machine setup $60.00 per batch

Movement 15.00 per batch move 0.10 per pound

Drilling 5.00 per hole

Welding 2.00 per inch

Shaping 25.00 per hour

Assembly 19.00 per hour

Inspection 2.00 per unit

Filling an order for a batch of 50 fireplace inserts (each insert weighing 150 pounds) required the following:

  • Three batch moves
  • Two sets of inspections
  • Drilling five holes in each unit
  • Completing 50 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.

Reference no: EM132054663

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