Reference no: EM13508577

Activity-Based Costing
Demon Manufacturing Company has developed the following activity cost information for its manufacturing activities:
Assembly $30 per hour
Drilling $8 per hole
Inspection $4 per inspection
Machine setup $400 per batch
Movement $30 per batch plus$0.20 per lb.
Shaping $50 per hour
Welding $10 per inch
Filling a batch order for 90units with a combined weight of 400 pounds required:

• Three sets of inspections per unit
• Drilling four holes in each unit
• Completing 20 inches of welds on each unit
• 0.6 hour of shaping for each unit
• One hour of assembly per unit

Calculate the total cost to produce a batch of 90 units.