Ace Plastics produces many different kinds of products all in one manufacturing facility. They have...
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Accounting
Ace Plastics produces many 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
Molding allocated on direct labor hours
Packaging allocated by number of units produced
The activity rates are as follows:
| Materials management | $10.00 | Per purchase order |
| Molding | $24.00 | Per direct labor hour |
| Packaging | $0.10 | Per unit |
Ace received an order for 4,000 plastic toys. The engineering design shows that the order will require $300 of direct material cost, $200 of direct labor cost, will require 3 purchase orders, will need 10 direct labor hours, and will produce 4,000 units of product. What will the full production cost of the order be?
Group of answer choices
$1,170
$1,285
$978
$630
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