# M6-27b - 18,000 71,250 Setup cost(\$125 × 18 and(\$125 × 22...

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b. Calculation of activity costs: Setup costs \$900,000 ÷ 7,200 setups = \$125 per setup Ordering costs \$240,000 ÷ 60,000 orders = \$4 per order Maintenance costs \$1,200,000 ÷ 96,000 mach. hours = \$12.5 per mach. hr. Power \$120,000 ÷ 600,000 kilowatt hours = \$0.20 per kwh Job cost calculations: Job 201 Job 202 Direct materials \$13,500 \$15,000 Direct labor
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Unformatted text preview: 18,000 71,250 Setup cost (\$125 × 18) and (\$125 × 22) 2,250 2,750 Ordering costs (\$4 × 24) and (\$4 × 45) 96 180 Maintenance costs (\$12.5 × 540) & 6,750 (\$12.5 × 450) 5,625 Power (\$0.20 × 270) and (\$0.20 × 360) 54 72 Total job costs \$40,650 \$94,877 Units produced ÷ 1,125 ÷ 900 Cost per unit \$36.13 \$105.42...
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