Connor Buck Company purchased an oil tanker on January 1, 2014, at a cost of $3,000,000 cash. Connor expects to operate the depo
1 answer:
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Answer:
$4,783.88
Explanation:
As for the provided information, the problem is based on activity based costing.
There are 3 activities:
i) Design Changes = $120,000 for 500 changes
Cost per change = = $240 for each change
ii) Setups = $380,000 for 4,000 setups
Cost per setup = = $95 for each setup
iii) Inspections = $100,000 for 9,000 inspections
Cost per inspection = = $11.11
In case of Money Managers, there is printing of 70,000 pages
Design charges = 12 design changes $240 = $2,880
Setup charges = 17 setups $95 = $1,615
Inspection charges = 26 inspections $11.11 = $288.88
Total overhead cost for Money Managers = $2,880 + $1,615 + $288.88 = $4,783.88