Question

Beartowne Enterprises uses an activityminusbased costing system to assign costs in its autominusparts division.

Activity Est. Indirect Activity Costs Allocation base Cost allocation rate
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

The following units were produced in December with the following information. The company incurs no direct labor costs.

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

Total manufacturing costs for Part 003 is:_________

Answer 1

Total manufacturing costs for Part 003 is:_________ $ 38625

Step-by-step explanation:

Beartowne Enterprises

Activity Based Costing

We multiply the rate of of each activity with allocation base to get the indirect activity costs.

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