M6-19 - M6-19 Activity cost calculations: Machine setup...

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Unformatted text preview: M6-19 Activity cost calculations: Machine setup cost = $600,000 ÷ 12,000 setup hours = $50 per setup hour Material handling cost = $120,000 ÷ 2,000 tons = $60 per ton of materials Machine operation = $500,000 ÷ 10,000 = $50 per machine hour Product costs: C23 Cams U2 Shafts $20,000 10,000 (7 setup hours × $50) (8 tons × $60) (5 machine hours × $50) Direct materials $30,000 Direct labor 5,000 Manufacturing overhead: Machine setups (3 setup hours × $50) 150 Material handling (12.5 tons × $60) 750 Machine operation (4 hours × $50) 200 Total job costs $36,100 Units produced ÷ 500 Cost per unit produced $ 72.20 350 480 250 $31,080 ÷ 300 $103.60 ...
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This note was uploaded on 05/08/2011 for the course 193431918X 711 taught by Professor Braham during the Spring '11 term at Missouri (Mizzou).

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