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Ace Plastics Produces Many Different Kinds of Products All in One

Question 122

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Ace Plastics produces many different kinds of products all in one manufacturing facility. They have identified four activities for their costing system: Ace Plastics produces many different kinds of products all in one manufacturing facility. They have identified four activities for their costing system: The activity rates are as follows: 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? A) $630 B) $645 C) $1,095 D) $1,185 The activity rates are as follows:
Ace Plastics produces many different kinds of products all in one manufacturing facility. They have identified four activities for their costing system: The activity rates are as follows: 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? A) $630 B) $645 C) $1,095 D) $1,185 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?


A) $630
B) $645
C) $1,095
D) $1,185

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