Ace Plastics Produces Different Kinds of Products, All in One

question 59

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:
$$\begin{array} { | l | r | l | } \hline \text { Materials management } & \$ 12.00 & \text { Per purchase order } \\\hline \text { Chemical processing } & \$ 7.50 & \text { Per metric ton } \\\hline \text { Molding } & \$ 24.00 & \text { Per direct labor hour } \\\hline \text { Packaging } & \$ 0.10 & \text { Per unit } \\\hline\end{array}$$ 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:

Obedience

When a person follows the orders of a person in authority.

Conformity

The altering of your own behaviors and opinions to match those of other people or to match other people’s expectations.

Compliance

The tendency to agree to do things requested by others.

Obedience

The act of following the directions or commands of an authority figure.