Reassigning Costs to Cost Objectives
Regal Products has developed the following activity cost information for its manufacturing activities:
| Activity | Activity cost |
| Machine setup |
$80.00 per batch |
| Movement |
15.00 per batch move |
|
0.10 per pound |
| Drilling |
3.00 per hole |
| Welding |
4.00 per inch |
| Shaping |
25.00 per hour |
| Assembly |
19.00 per hour |
| Inspection |
2.00 per unit |
Filling an order for a batch of 50 fireplace inserts (each insert weighing 150 pounds) required the following:
Three batch moves
Two sets of inspections
Drilling five holes in each unit
Completing 80 inches of welds on each unit
Thirty minutes of shaping for each unit
One hour of assembly per unit
Determine the activity cost of converting the raw materials into 50 fireplace inserts.