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What is the total manufacturing cost for inspections

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Question - Brahtz Company uses an activity-based costing system. It has the following manufacturing activity areas, related cost drivers and cost allocation rates:

Activity

Cost Driver

Cost Allocation Rate

Machine setup

Number of setups

$25.00

Materials handling

Number of parts

0.25

Machining

Machine hours

13.00

Assembly

Direct labor hours

22.00

Inspection

Number of finished units

7.00

During the month, 100 units were produced, with no defects, requiring three setups. Each unit consisted of 17 parts, 3 direct labor hours and 2.5 machine hours. Direct materials cost $50 per finished unit.

What is the total manufacturing cost for inspections?

$-0-

$700

$90

$7

Reference no: EM132072966

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