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American Delights manufactures a wide variety of holiday and seasonal decorative items. Americans activity-based costing ove

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Answer #1
Activity Activity Rate Activity Value Activity Cost
Purchasing $380 per order 3 1,140
Storing $2 per square foot/days 4,000 8,000
Machining $100 per machine hour 60 6,000
Supervision $5 per direct labor hour 40 200
Total $15,340
Calculation of Total Cost
Direct materials 19,000
Direct labor (40 x 30) 1,200
Overhead cost 15,340
Total Cost $35,540

The total cost of the snow man project = $35,540

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