Question: For the hardware company in Exercise 1-15, suppose that setup and testing costs are different for CPUs and monitors. Annual costs for setup and testing

For the hardware company in Exercise 1-15, suppose that setup and testing costs are different for CPUs and monitors. Annual costs for setup and testing are $0.4 million and $0.7 million, for CPUs and monitors, respectively. However, between two types of CPUs, these costs are basically similar, as is also the case for monitors.
(a) Calculate the cost per unit of each product using the activity-based costing method.
(b) Discuss these unit costs in relation to those in Exercise 1-15.

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