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?
