Question - Reassigning Costs to Cost Objectives
Regal Products has developed the following activity cost information for its manufacturing activities:
Machine setup $60.00 per batch
Movement 15.00 per batch move 0.10 per pound
Drilling 5.00 per hole
Welding 2.00 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 50 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.