ace plastics produces many different kinds of products all in one manufacturing faci 492040

Ace Plastics produces many different kinds of products all in one manufacturing facility.

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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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