Conform Foam Products Produces Different Kinds of Industrial Packing Materials

question 134

Essay

Conform Foam Products produces different kinds of industrial packing materials, all in one manufacturing facility. They have identified four activities for their costing system:
Materials management-allocated by number of purchase orders
Chemical processing-allocated on metric tons
Molding-allocated on direct labor hours
Packaging-allocated by number of units produced
The activity rates are as follows:
$\begin{array}{ll}\text { Materials management } & \$ 10.00 \mathrm{Per} \text { purchase or der } \\\text { Chemical processing } & 6.50 \mathrm{Per} \text { metric ton } \\\text { Molding } & 23.50 \mathrm{Per} \text { direct labor hour } \\\text { Packaging } & 0.25 \mathrm{Per} \text { unit }\end{array}$
Engineering design shows that the order will require direct materials of $775, direct labor cost of $125, 5 purchase orders, 6 metric tons of chemical base, and 12 direct labor hours. The size of the order to produce is 5,000 units of product.
Required:
(1) Calculate the overhead cost of the order.
(2) Calculate total cost of the order.

---

Definitions:

Associated Challenges

Complications or obstacles that are related to a specific situation, task, or goal.

Framers

The individuals who were involved in writing and adopting the United States Constitution, including prominent figures like James Madison and Alexander Hamilton.

American Government

The political system of the United States, consisting of the Executive, Legislative, and Judicial branches at both federal and state levels.

Least Dangerous Branch

A term referring to the judiciary, suggesting that compared to the executive and legislative branches, it has the least capacity to threaten democracy or abuse power.