Answer:
Total manufacturing costs for Part 003 is:_________ $ 38625
Explanation:
Beartowne Enterprises
Activity Based Costing
<em>We multiply the rate of of each activity with allocation base to get the indirect activity costs.</em>
Total manufacturing costs for Part 003 is:_________
Materials Costs $ 8,000
Materials handling = 2,300 moves *$3.00/move= $ 6900
Assembling = 1,650 machine hours * $ 6.0= $ 9900
Packaging = 3,950 units * $3.50/finished unit = $ 13825
Total Manufacturing Costs $ 38625
Given Data
Part # # Produced Materials Costs # Moves Machine Hrs.
Part 001 1,450 $1,500 300 500
Part 002 5,500 $4,000 500 300
Part 003 3,950 $8,000 2,300 1,650
Activity . Indirect Activity Allocation Cost allocation rate
Est Costs base
Materials $55,000 Material moves $3.00/move
Assembling $195,000 Machine hours $6.00/machine hour
Packaging $70,000 # of finished units $3.50/finished unit
