Ace Plastics Produces Different Kinds of Products,all in One Manufacturing

question 113

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.The order will also require four purchase orders to be placed,use 2 metric tons of chemical base,and 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:

Rifting

The process by which the Earth's crust is stretched and broken apart, leading to the formation of rift valleys and, eventually, new ocean basins.

Mesozoic

The geological era between 252 to 66 million years ago, known for the dominance of dinosaurs.

Paleozoic

An era in Earth's geologic time scale, from about 541 to 252 million years ago, marked by the development of early life.

Subduction Zone

A region of the Earth's crust where tectonic plates converge, and one plate moves under another, often creating volcanic and seismic activity.