A product consists of three manufactured parts with one operation each. Material for each part...
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Accounting
A product consists of three manufactured parts with one operation each. Material for each part needs to be ordered, received and inspected. The parts are assembled into the final product, inspected, and packed. Order processing, scheduling and accounting are required per batch. R&D and engineering costs are apportioned to each unit produced. An order for 250 of the product is received. A summary of the ABC cost estimate for the batch is shown. Activity Cost Basis Hourly Rate Cost // Activity Log Order 1// batch $250.00 Schedule 1// batch 176.00 Order Material 3// batch 125.38 Receive Material 3// batch 121.41 Inspect Material 3// batch 287.43 Set-up Part A 4hr// batch $18.65 Set-up Part B 7.35hr// batch 23.88 Set-up Part C
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