Baldacci Inc. has a casting machine that is used for three of the companys products. Each machine
Question:
Baldacci Inc. has a casting machine that is used for three of the company’s products. Each machine setup costs $ 20,445, and the machine was set up in June for six different production runs. The following information shows the units of output from each of the setups.
a. If total machine setup cost is allocated to all units of product, what is the setup cost per unit and total setup cost for Products # 453, 529, and 663 during June?
b. If machine setup cost is allocated to each type of product made, what is the setup cost per unit of Products # 453, 529, and 663 and the total cost of those products during June? (Round to the nearest cent.)
c. If Baldacci Inc. had manufactured all similar products in a single production run, how would unit and total costs have changed during June? (Round to the nearestcent.)
Step by Step Answer:
Cost Accounting Foundations And Evolutions
ISBN: 9781618533531
10th Edition
Authors: Amie Dragoo, Michael Kinney, Cecily Raiborn