Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
DATA INPUT Direct Materials Direct Materials
Orbital Industries of Canada, Ltd. Used in Used in
Units Ceralam Sheets Dipping
Ceralam sheets (sold after the rolling operation) 6,000 960,000$
Nonreflective housings (sold after the punching operation) 2,500 400,000
Reflective housings (sold after the dipping operation) 1,500 240,000 60,000$
Total 10,000 1,600,000$ 60,000$
Rolling Molding Punching Dipping
Direct material 1,600,000$ -$ -$ 60,000$
Direct labor 600,000 224,000 256,000 90,000
Manufacturing overhead 900,000 336,000 384,000 135,000
Total 3,100,000$ 560,000$ 640,000$ 285,000$
SOLUTION
1. Conversion costs Rolling Molding Punching Dipping
Direct labor 600,000$ 224,000$ 256,000$ 90,000$
Total units produced:
Rolling only 10,000
2. Product costs: Ceralam Sheets Nonreflective Reflective
Sold after Ceralam Ceralam Total
Rolling Housings Housings Costs
Direct material:
Conversion costs:
Rolling 900,000 375,000 225,000 1,500,000
