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Activity-Based Costing
Demon Manufacturing Company has developed the following activity cost information for its manufacturing activities:
Assembly $30 per hour
Drilling $8 per hole
Inspection $4 per inspection
Machine setup $400 per batch
Movement $30 per batch plus$0.20 per lb.
Shaping $50 per hour
Welding $10 per inch
Filling a batch order for 90units with a combined weight of 400 pounds required:

  • Three sets of inspections per unit
  • Drilling four holes in each unit
  • Completing 20 inches of welds on each unit
  • 0.6 hour of shaping for each unit
  • One hour of assembly per unit


Calculate the total cost to produce a batch of 90 units.

 

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M91045695

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