Question

Activity	Cost Allocation Base	Budgeted MOH	Budgeted Base Usage
Mixing	Mixing machine hours	$45,000	1,800
Molding	Molding machine hours	$360,000	2,000
Polishing	Polishing labor hours	$52,000	6,500
Packing	Packing labor hours	$29,260	3,800

Weasley received an order for 7,000 units. Each unit required direct materials costing $17.00. Weasley had to manufacture 10 extra units and repair 16 units after 20 units were run over by a truck (including 4 that were completely destroyed) and 6 units were spoiled as a normal part of the production process. Total direct labor costs for the job (including the extra units) were $20,056. The job (including the extra units) required 120 mixing machine hours,   170 molding machine hours, 540 polishing labor hours, and 300 packing hours. Repair costs totaled $200.

b.   After considering the effect of spoilage and rework, what is the total cost of this job?

Answer 1