Montross Lumber processes wood to be shipped to construction companies. In order to keep its products uniform, Montross conducts inspections on 20% of the boards produced. Inspections cost the company $10 per hour and it takes 1 minute to inspect each board. How much would it cost to fill an order for 30,000 boards? Need explanation in terms of Activity-based costing method using example below. Activity activity consumption rate Activity Consumption Hour  Total Overhead overhead per unit

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Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.