Economics · Management Accounting
Amelia Co. manufactures a range of industrial products. The budgeted costs of the maintenance section for the current 12-month period have been analyzed as follows: Routine maintenance: $151,000 Production line set up: $42,000 Total: $193,000 The budget was prepared on the basis that there will be 720 set ups and that 10,080 machine hours will be worked. The company has received an enquiry for an order which requires 3 set ups and will take 56 machine hours. Using activity-based principles, how much (to the nearest $) regarding maintenance section costs should be included in the cost of this order?
- 1$4,106
- 2$1,072
- 3$1,014✓
- 4$804
Correct answer
$1,014
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