Stage 2 ABC for Manufacturing: Reassigning Costs to Cost Objectives Regal Produc

Question

Stage 2 ABC for Manufacturing: Reassigning Costs to Cost Objectives Regal Products has developed the following activity cost information for its manufacturing activities: Activity Machine setup Movement Activity cost Drilling Welding Shaping Assembly Inspection $40.00 per batch 15.00 per batch move 0.10 per pound 2.00 per hole 3.00 per inch 25.00 per hour 19.00 per hour 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 e Completing 70 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.

Explanation / Answer

Machine Setup              40.00 Movement: Batch - $15 X 3 Batch              45.00 Weight - $0.10 X 50 Units X 150 pounds X 3 Moves        2,250.00      2,335.00 Inspection - $2 X 2 X 50          200.00 Drilling - $2 X 5 X 50          500.00 Welding - $3 X 70 X 50    10,500.00 Shaping - $25 X 0.50 X 50          625.00 Assembly - $19 X 1 X 50          950.00 Total    15,110.00

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.