1 Tasty Beverage Co. produces soft drinks, specializing in fruit drinks. They produce 5,000 cans of product per batch. Setup cost for each batch is $50 and each drink costs $0.10 to produce. What is the total cost per batch? How much would it cost to fill an order for 100,000 cans? 2 Montross Lumber processes wood to be shipped to construction companies. In order to keep their products uniform, they conduct 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 3 Orange Inc. grows cabbage. Each package shipped out contains 20 vegetables. It costs Orange $5 to put together each package and $0.10 to clean and process each vegetable. If they are discussing an order for 50 heads of cabbage, how much higher is the cost of producing 60 heads, considering package size? 4 Williams Performance Co. manufactures sports cars. After making a sale, the salesperson sends the car to be detailed before the customer takes it home. Detailing the car takes 30 minutes at a cost of $15 per hour for direct labor and $5 per car for materials. If the average salesperson sells 5 cars per day, what is the average cost per week for detailing cars? 5 Stackhouse Computing produces high performance desktop computers. Annual CGS data shows that the company spent $1,000,000 for 5,000 computers produced, and each computer requires 2 technician hours and 5 hours of direct labor. Direct labor is paid $10 per hour by the company. What is the cost of 1 technician hour? 6 Haywood Printing is processing a job with the following activity rates: Activity Cost Driver Driver Rate Direct Labor Number of Hours $8 Copying Number of Copies $0.05 If this job requires 5 hours for the 1,000 copies, what is the activity based cost of the job? 7 Locke Data Processing reported expenses of $5,000,000 for indirect labor, of which $3,000,000 was for data analysis, and $2,000,000 was for data entry. Locke recorded 30,000 hours of data analysis and 100,000 hours of data entry. What are the activity based rates for each area of direct labor 8 The materials handling charge for ABC corp is $.50 per pound of finished product. What is the materials handling charge for a job that produced 10,000 units and the weight of each product was 6 pounds?
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