Question

Activity Cost Allocation Base Budgeted MOH Budgeted Base Usage Mixing Mixing machine hours $45,000 1,800 Molding...

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?

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