Exercise 6-16

Classic Attire is the designer and manufacturer of prom dresses. The president of Classic wants to switch to an activity-based approach in the upcoming year to assign prices to the gowns. Production line setups are a major activity at Classic. Next year Classic expects to perform 1,510 setups at a total cost of $93,620. Classic plans to produce 305 dresses of the A128 design, which will require 3 setups. How much setup cost will be allocated to each dress of the A128 design that is produced? (Round answer to 2 decimal places, e.g. 15.25.)

Setup cost allocated

$

per unit