Determine the activity cost of converting the raw materials

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Reference no: EM132069981

Reassigning Costs to Cost Objectives
Regal Products has developed the following activity cost information for its manufacturing activities:

Activity	Activity cost
Machine setup	$80.00 per batch
Movement	15.00 per batch move
	0.10 per pound
Drilling	3.00 per hole
Welding	4.00 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 80 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: EM132069981

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