Ace Plastics Produces Different Kinds of Products, All in One

question 82

Essay

Ace Plastics produces different kinds of products, 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: Engineering design shows that the order will require direct material worth $540, direct labor cost being $90, require 4 purchase orders to be placed, use 2 metric tons of chemical base, need 8 direct labor hours. The size of the order is to produce 3,000 units of product. Calculate total cost of production of the order.

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Definitions:

Subdivisions

The act of dividing land into plots or parcels for the purpose of sale, lease, or development.

Applicability

The relevance or suitability of a law, regulation, or principle in a specific context or situation.

Zoning Ordinance

Regulations set by local governments determining how land within their jurisdiction can be used, affecting the development and use of properties.

Occupancy

Occupancy refers to the use or inhabitance of a space, such as a building or land, typically governed by legal or contractual terms.