Smythe Crystal makes fine tableware in its Ireland factory The following data are taken from its production plans for the year Direct labor costs 5,870,000 Setup costs 630,000 Required 1 Determine the setup cost per unit for the wineglasses and for the commemorative vases if setup costs are assigne...

1 Determine the setup cons per unit Setup cods are ass4ed on the basis of direct labor hours Total d ...

Smythe Crystal makes fine tableware in its Ireland factory. The following data are taken from its production

Question:

Smythe Crystal makes fine tableware in its Ireland factory. The following data are taken from its production plans for the year.

Direct labor costs..................................â‚¬5,870,000

Setup costs.............................................630,000

Smythe Crystal makes fine tableware in its Ireland factory. The

Required
1. Determine the setup cost per unit for the wineglasses and for the commemorative vases if setup costs are assigned using a single plant wide overhead rate based on direct labor hours.
2. Determine setup costs per unit for the wineglasses and for the commemorative vases if the setup costs are assigned based on the number of setups.
3. Which method is better for assigning costs to each product? Explain.