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

question 31

Essay

Stampout 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 materials that cost $540;direct labor cost will be $90.The order will also require four purchase orders to be placed,use two metric tons of chemical base,and need eight direct labor hours.The size of the order is to produce 3,000 units of product.Calculate the total production of the order.

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Definitions:

Derivative Suit

A suit to enforce a corporate right of action brought on behalf of a corporation by one or more of its shareholders. Also called derivative action.

Corporation

A legal entity that is separate from its owners, providing limited liability protection, with the capability to own assets, incur liabilities, and enter into contracts.

CEO

The Chief Executive Officer, responsible for the overall management and decision-making of a company.

Preemptive Right

A shareholder's right to buy new shares in a company before they are offered to the public, to maintain their ownership percentage.