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MDD currently produces product MBA-15, which has direct costs by the department as shown in the table below. Calculate the traditional (also called full-absorption) reported
MDD currently produces product MBA-15, which has direct costs by the department as shown in the table below. Calculate the traditional (also called full-absorption) reported unit cost of Product MBA-15. Please note, the correct answer is $11.99 per unit.
Cost Category | Wafer Fab | Wafer Test | ICA DWB | ICA MTF | IC Test | Total |
Direct Materials | $0.1135 | $0.0000 | $0.3656 | $0.0429 | $0.0000 | $0.5220 |
Direct Labor | $0.2626 | $0.0205 | $0.4764 | $0.5429 | $0.6382 | $1.9406 |
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