NorthingtonInc. manufactures small parts and uses an activity-based costing system.
Northington provides the following data:
Estimated Indirect Cost
Allocation
Activity Activity Costs Allocation Base Rate
Materials handling $ 50000 Material moves $1.50/move
Assembling 200000 Direct labor hours 6.00/hour
Packaging 75000 Number of finished units .60/unit
Three different parts were produced in October. The following information is available:
Direct Direct
Number Materials Material Labor
Part Produced Costs Moves Hours
A 2000 $ 2000 1000 150
B 3000 6000 1500 500
C 4000 10000 2000 1200
Compute the total manufacturing costs and the unit costfor each of the three parts forthe
month of October.