Curt’s casting manufactures metal parts in a large manufacturing facility. curt’s customers order 52,000 tons of castings each quarter. the facility has a practical capacity of 84,000 tons. curt leased the current facility because it was more convenient than another new facility that had a capacity of 52,000 tons. the annual cost of the facility is $336,000. the variable cost of a casting is $5. required: a. what cost per casting should the cost system report?

The cost per casting that the cost system should report is $9.

Explanation:

Cost per casting = Variable + Fixed

                             = $5 + ($336,000/84,000 tons)

                            = $5 +  $4

                            = $9

Therefore, The cost per casting that the cost system should report is $9.

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