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:
Engineering design shows that the order will require direct material worth $775,direct labor cost being $125,require 5 purchase orders to be placed,use 6 metric tons of chemical base,need 12 direct labor hours.The size of the order is to produce 5,000 units of product.Required:
(1)Calculate the overhead cost of the order.(2)Calculate total cost of production of the order.
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q100: Allure Company manufactures and distributes two
Q101: Mission Company is preparing its annual
Q102: Upton Manufacturing Corporation has a traditional
Q103: Mission Company is preparing its annual
Q104: Cooke Company manufactures two products,Product F and
Q106: Falcon Company manufactures and sells two
Q107: Conway Mountain Analysis offers agriculture and environmental
Q108: In an activity-based costing (ABC)system,what should be
Q109: Mission Company is preparing its annual
Q110: The Sparkle Cleaning Company provides housecleaning services
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents