A local picnic table manufacturer has budgeted these overhead costs: Purchasing $63,000 Handling Materials 32,160 Machine Setups 70,500 Inspections 24,500 Utilities 28,500 They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown: Cost Driver Activity Orders 700 Material Moves 1,340 Machine Setups 15,000 Number of Inspections 5,000 Square Feet 190,000 Recent success has yielded an order for 900 tables. Assume direct labor costs per hour of $15.   Activity Order, Units 900 Direct Materials 112,700 Machine Hours 15,300 Direct Labor Hours 5,400 Number of Purchase Orders 50 Number of Material Moves 750 Number of Machine Setups 90 Number of Inspections 400 Number of Square Feet Occupied 7,000 Determine how much the job would cost given the following activities: Do not round intermediate computations and round final answers to nearest whole number.

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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.