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Sage Company uses an activity-based costing system. Consider the following information: Manufacturing Activity Cost Driver Used Cost per Unit of Conversion Area as Application
Sage Company uses an activity-based costing system. Consider the following information: Manufacturing Activity Cost Driver Used Cost per Unit of Conversion Area as Application Base Application Base Machine setup Number of setups $207 Material handling Number of parts $15 Milling Machine hours $55 Assembly Direct labour hours $24 During the past month, 69 units of a component were produced. 3 setups were required. Each unit needs 33 parts, 5 direct labour hours, and 7 machine hours. Direct materials cost $129 per finished unit. All other costs are classified as conversion costs. If the company would like its gross margin to be 40% of sales, what price should it charge per unit of the component? (Round entry to whole amount, e.g. 5,725.) Price $ per unit
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