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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