Ace Plastics Produces Different Kinds of Products,all in One Manufacturing

Essay

Ace Plastics produces different kinds of products,all in one manufacturing facility.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:
Engineering design shows that the order will require direct material worth $540,direct labor cost being $90.The order will also require four purchase orders to be placed,use 2 metric tons of chemical base,and need 8 direct labor hours.The size of the order is to produce 3,000 units of product.Calculate total cost of production of the order.