Gordon Miller's job shop has four work areas, A, B, C, and D. Distances in feet between centers of the work are are: A B C D A 3 9 6 B 7 7 - C 10 D Workpieces moved per week between work areas are: A B C D A 900 800 600 B 400 200 C 800 D It costs Gordon $2 to move 1 work piece 1 foot. The weekly total material handling cost of the layout = $ (enter your response as a whole number).
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
![### Job Shop Layout and Material Handling Costs
**Gordon Miller's job shop has four work areas, A, B, C, and D.** The distances in feet between centers of the work areas are shown in the table below:
| | A | B | C | D |
|------|---|---|---|---|
| **A** | – | 3 | 9 | 6 |
| **B** | – | – | 7 | 7 |
| **C** | – | – | – | 10 |
| **D** | – | – | – | – |
**Graph Explanation:**
- This table represents the distance in feet between the centers of the work areas A, B, C, and D. The horizontal and vertical headers represent the work areas. Each cell within the table shows the distance between the corresponding work areas. For example, the distance between work area A and work area B is 3 feet.
**Workpieces moved per week between work areas are:**
| | A | B | C | D |
|------|-----|-----|-----|-----|
| **A** | – | 900 | 800 | 600 |
| **B** | – | – | 400 | 200 |
| **C** | – | – | – | 800 |
| **D** | – | – | – | – |
**Graph Explanation:**
- This table represents the number of workpieces moved per week between the work areas. Similarly, the horizontal and vertical headers denote the work areas, and each cell shows the number of workpieces moved from one area to another within a week. For instance, 900 workpieces are moved weekly from work area A to work area B.
It costs Gordon $2 to move 1 workpiece 1 foot.
Using the data provided, you can calculate the weekly total material handling cost of the layout.
**Calculation Instructions:**
- Multiply the distance between each pair of work areas by the number of workpieces moved each week.
- Multiply the obtained product by the cost per foot ($2).
- Summarize these values to get the total weekly material handling cost.
**For example:**
- From A to B:
- Distance = 3 feet
- Workpieces moved = 900
- Cost = 3 *](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F55405650-831e-4332-81d1-e370640591aa%2Fcb08b91b-6314-4dc2-919e-8683a45cb7ed%2Fx3xgkp6_processed.png&w=3840&q=75)
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