Determine the product costs

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Reference no: EM133378872

Question: Evergreen Inc. expects to manufacture 4,000 refrigerators during the last quarter of the current year. The company uses activity-based costing to determine the product costs. The manufacturing activities and associated information is provided as follows:

Overhead activities	Overhead costs assigned ($)	Number of cost driver
Material handling	$150,000	120,000 Parts
Devising	$500,000	50,000 Engineering hours (EH)
Assembling	$180,000	120,000 Parts
Finishing	$170,000	4,000 Finishing hours (FH)

Each refrigerator uses 30 parts and requires 5 engineering hours and 1 finishing hour during the production process. The direct material costs and direct labor costs required for each refrigerator is $500 and $90 respectively. The amount of finishing costs allocated to each refrigerator would be: (Round your answer to two decimal points)

Reference no: EM133378872

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