Curts Casting manufactures metal parts in a large manufacturing facility. Curts customers order 62,000 tons...
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Curts Casting manufactures metal parts in a large manufacturing facility. Curts customers order 62,000 tons of castings each quarter. The facility has a practical capacity of 104,000 tons. Curt leased the current facility because it was more convenient than another new facility that had a capacity of 62,000 tons. The annual cost of the facility is $520,000. The variable cost of a casting is $6. Required: a. What cost per casting should the cost system report? b. Given your answer to requirement (a), what is the cost of excess capacity?
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