Ace Plastics produces many different kinds of products all in one manufacturing facility. They have identified four activities for their costing system: The activity rates are as follows:
Ace received an order for 3,000 plastic toys. The engineering design shows that the order will require $540 of direct material cost in total, $90 of direct labor cost, will require 4 purchase orders, will use 2 metric tons of chemical base, will need 8 direct labor hours, and will produce 3.000 units of product. What will the full production cost of the order be?

Question

Ace Plastics produces many different kinds of products all in one manufacturing facility. They have identified four activities for their costing system:  The activity rates are as follows:
 Ace received an order for 3,000 plastic toys. The engineering design shows that the order will require $540 of direct material cost in total, $90 of direct labor cost, will require 4 purchase orders, will use 2 metric tons of chemical base, will need 8 direct labor hours, and will produce 3.000 units of product. What will the full production cost of the order be?

Quizplus · Accepted Answer

The Answer of Ace Plastics produces many different kinds of products all in one manufacturing facility. They have identified four activities for their costing system:  The activity rates are as follows:
 Ace received an order for 3,000 plastic toys. The engineering design shows that the order will require $540 of direct material cost in total, $90 of direct labor cost, will require 4 purchase orders, will use 2 metric tons of chemical base, will need 8 direct labor hours, and will produce 3.000 units of product. What will the full production cost of the order be?

Ace Plastics Produces Many Different Kinds of Products All in One