Question
The old compute chip manufacturing factory is quite versatile, capable of many types of programmable chips. It is highly automated, so overhead is a major
The old compute chip manufacturing factory is quite versatile, capable of many types of programmable chips. It is highly automated, so overhead is a major cost component. They utilize Activity Based Costing for assigning overhead to its products. Here are some relevant facts:
Cost driver est number of drivers Setup department 10,000,000 number of setups 800 Material handling 5,000,000 pallets of materials 5000 Manufacturing equipment 250,000,000 batches run 4000 One of their products has these volumes: Chip D Direct Materials 150000 Direct Labor 40,000 number of setups 50 pallets of materials 75 batches run 60 units produced 125,000
What is the cost per unit for the Chip D?
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