Acc206 Principles of Accounting: (Week 4) Ace Plastics produces many different kinds of products

Acc206 Principle of Accounting
Week 4 Quiz Question:
Ace Plastics produces many different kinds of products all in one manufacturing facility. They have identified four activities for their costing system:
Materials management – allocated by number of purchase orders
Chemical processing – allocated on metric tons
Molding – allocated on direct labor hours
Packaging – allocated by number of units produced

The activity rates are as follows:
Materials management $12.00 Per purchase order
Chemical processing $ 7.50 Per metric ton
Molding $24.00 Per direct labor hour
Packaging $ 0.10 Per unit

Ace received an order for 3,000 plastic toys. The engineering design shows that the order will require $540 of direct material cost in total, $90 of direct labor cost, will require 4 purchase orders, will use 2 metric tons of chemical base, will need 8 direct labor hours, and will produce 3.000 units of product.
What will the full production cost of the order be?
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