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Estimate the full cost of the batch

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Question - The following budget data were collected for a manufacturing firm:

Component of Overhead cost # drivers

Machine-related costs $60,000 2000 machine hours

Production line re-tooling $100,000 100 batches

Adjustments during assembly $20,000 5,000 adjustments

Total overhead $60,000

The firm will manufacture a batch of 100 units. The direct cost per unit is estimated to be $30 per unit and the batch will require 20 machine hours and 500 adjustments.

Estimate the full cost of the batch.

Reference no: EM132578375

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