Justin, an ME with Dynamic Castings, has been asked to make a preliminary estimate of the total cost to manufacture 1500 sections of high pressure gas pipe using an advanced centrifugal casting method. Since a ±20% estimate is acceptable at this preliminary stage, a unit method estimate is sufficient. Use the following resource and unit cost factor estimates to help Justin.Materials: 3000 tons at $45.90 per tonMachinery and tooling: 1500 hours at $120 per hourDirect labor in-plant:Casting and treating: 3000 hours at $55 per hourFinishing and shipping: 1200 hours at $45 per hourIndirect labor: 400 hours at $100 per hour
Justin, an ME with Dynamic Castings, has been asked to make a preliminary estimate of the total cost to manufacture 1500 sections of high pressure gas pipe using an advanced centrifugal casting method. Since a ±20% estimate is acceptable at this preliminary stage, a unit method estimate is sufficient. Use the following resource and unit cost factor estimates to help Justin.Materials: 3000 tons at $45.90 per tonMachinery and tooling: 1500 hours at $120 per hourDirect labor in-plant:Casting and treating: 3000 hours at $55 per hourFinishing and shipping: 1200 hours at $45 per hourIndirect labor: 400 hours at $100 per hour
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 3PB: A local picnic table manufacturer has budgeted the following overhead costs: They are considering...
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Justin, an ME with Dynamic Castings, has been asked to make a preliminary estimate of the total cost to manufacture 1500 sections of high pressure gas pipe using an advanced centrifugal casting method. Since a ±20% estimate is acceptable at this preliminary stage, a unit method estimate is sufficient. Use the following resource and unit cost factor estimates to help Justin.
Materials: 3000 tons at $45.90 per ton
Machinery and tooling: 1500 hours at $120 per hour
Direct labor in-plant:
Casting and treating: 3000 hours at $55 per hour
Finishing and shipping: 1200 hours at $45 per hour
Indirect labor: 400 hours at $100 per hour
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