Find the total dollar amount of supervisions cost

Reference no: EM131034981

	Blox ($)	Shapez ($)
Direct material per unit	10	23
Direct labour per unit	19	32
Manufacturing overhead per unit	7	10
Selling & Admin. expenses per unit	17	31

The company is investigating the use of an Activity-based costing system and has identified two principal activities associated with manufacturing overheads: Supervision and Quality Inspections. In the last quarter, Supervision costs amounted to $105,481 and are driven by the number of Supervision hours; Quality inspection costs totaled $115,173 and are driven by the number of inspections.

Each Blox requires 45 minutes of supervision time and a single quality inspection. Each Shapez requires one hour of supervision time, and every second Shapez goes through a quality inspection.

The Perth plant produced and sold 69,574 Blox and 44,275 Shapez in the last quarter, at a selling price of $65 for Blox and $135 for Shapez.

Calculate the total dollar amount of Supervisions cost that would have been allocated to the Shapez product line, if activity-based costing had been used in the last quarter. (Round your answer to the nearest dollar.)

Reference no: EM131034981

Questions Cloud

Discuss one aspect of the low-cost-carrier : Discuss one aspect of the low-cost-carrier business model, such as Ryanair's, that provides a sustainable cost advantage over a large network carrier, for example, British Airways.

How will this blog impact the sales process : Before Dee could get very far with her project to create a blog for the sales force, she needed a budget. For that, she needed the approval of her boss. When Dee explained the idea to him, he was pleased that she was thinking innovatively. How will t..

Different wire soldering machines : The Schwab Steel Company is considering two different wire soldering machines. Machine 1 has an initial cost of $100,000, costs $20,000 to set up and is expected to be sold for $20,000 after 10 years.

An airline loses money on one of its routes : An airline loses money on one of its routes but has decided to continue to provide service. Could this decision be economically rational in the short-run? In the long-run?

Find the total dollar amount of supervisions cost : Calculate the total dollar amount of Supervisions cost that would have been allocated to the Shapez product line, if activity-based costing had been used in the last quarter. (Round your answer to the nearest dollar.)

Airline passengers are broadly segmented : Airline passengers are broadly segmented by purpose of travel. Characterize the two major segments by price elasticity of demand. What is the implication for the price each segment will pay for air travel?

Determine the coefficient of static friction at a : The 50-kg uniform pole is on the verge of slipping at A when θ= 45 °

Explain how the government uses fiscal and monetary policy : Explain how the government uses fiscal and monetary policy to expand or contract the economy. Be sure to indicate the impact of fiscal and monetary policy on such important variables as employment, interest rates, GDP and government revenue.

Delta neutral portfolio of call options and stock : Consider an option on a non-dividend-paying stock when the stock price is $45, the strike price is $42, the risk-free interest rate is 5% per annum, the volatility is 25% per annum, and the time to maturity is five months. It can be shown that d1=..

User Account

All Pages