Question: Baldacci Inc. has a casting machine that is used for three of the companys products. Each machine setup costs $ 20,445, and the machine was
Baldacci Inc. has a casting machine that is used for three of the company’s products. Each machine setup costs $ 20,445, and the machine was set up in June for six different production runs. The following information shows the units of output from each of the setups.
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a. If total machine setup cost is allocated to all units of product, what is the setup cost per unit and total setup cost for Products # 453, 529, and 663 during June?
b. If machine setup cost is allocated to each type of product made, what is the setup cost per unit of Products # 453, 529, and 663 and the total cost of those products during June? (Round to the nearest cent.)
c. If Baldacci Inc. had manufactured all similar products in a single production run, how would unit and total costs have changed during June? (Round to the nearestcent.)
Setup # Product #453 Product #529 Product #663 22,800 840 15,200 27,900 60 17,800
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a Total setup cost 20445 x 6 122670 Total setup cost per unit 1... View full answer
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