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Sip Healthy Company manufactures juicers and blenders. Management has compiled the following information: Juicer Blender Units produced 7,500 15,000 Direct materials/unit $62.50 $40.00 Direct
Sip Healthy Company manufactures juicers and blenders. Management has compiled the following information: Juicer Blender Units produced 7,500 15,000 Direct materials/unit $62.50 $40.00 Direct labor/unit $15.00 $5.00 Direct labor hours, production 22,500 15,000 Machine hours, production 30,000 20,000 Batches 10,000 15,000 Production costs are as follows: Activity Cost Activity Driver Machining $420,000 Machine hours Moving/ warehousing $255,000 Direct labor hours Equipment setup $160,000 Batches Total overhead cost $835,000 What is the cost per driver unit for the cost of machining?
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