Spiry Plastics produces different kinds of products, all in one manufacturing facility They have identified four activities for their costing system:
View the four activities.
View the activity rates.
Engineering design shows that the order will require direct materials that cost $; direct labor cost will be $ 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 units of product. Calculate the total production of the order.
The total production cost of the order is
activity rates
tableMaterials management Per purchase order$Chemical processing Per metric ton$Molding Per direct labor hour$Packaging Per unit$
activities
Materials managementallocated by number of purchase orders
Chemical processingallocated on metric tons
Moldingallocated on direct labor hours
Packagingallocated by number of units produced
