1. Tasty Beverage Co. produces soft drinks, specializing in fruit drinks. They produce 5,000 cans of product per batch. Setup cost for each batch is $50 and each drink costs $0.10 to produce. What is the total cost per batch? How much would it cost to fill an order for 100,000 cans?
2. Montross Lumber processes wood to be shipped to construction companies. In order to keep their products uniform, they conduct inspections on 20% of the boards produced. Inspections cost the company $10 per hour and it takes 1 minute to inspect each board. How much would it cost to fill an order for 30,000 boards?
3. Orange Inc. grows cabbage. Each package shipped out contains 20 vegetables. It costs Orange $5 to put together each package and $0.10 to clean and process each vegetable. If they are discussing an order for 50 heads of cabbage, how much higher is the cost of producing 60 heads, considering package size?
4. Williams Performance Co. manufactures sports cars. After making a sale, the salesperson sends the car to be detailed before the customer takes it home. Detailing the car takes 30 minutes at a cost of $15 per hour for direct labor and $5 per car for materials. If the average salesperson sells 5 cars per day, what is the average cost per week for detailing cars?
5. Stackhouse Computing produces high performance desktop computers. Annual CGS data shows that the company spent $1,000,000 for 5,000 computers produced, and each computer requires 2 technician hours and 5 hours of direct labor. Direct labor is paid $10 per hour by the company. What is the cost of 1 technician hour?
6. Haywood Printing is processing a job with the following activity rates:
Activity Cost Driver Driver Rate
Direct Labor Number of Hours $8
Copying Number of Copies $0.05
If this job requires 5 hours for the 1,000 copies, what is the activity based cost of the job?
7. Locke Data Processing reported expenses of $5,000,000 for indirect labor, of which $3,000,000 was for data analysis, and $2,000,000 was for data entry. Locke recorded 30,000 hours of data analysis and 100,000 hours of data entry. What are the activity based rates for each area of direct labor?
8. The materials handling charge for ABC corp is $.50 per pound of finished product. What is the materials handling charge for a job that produced 10,000 units and the weight of each product was 6 pounds?