(Levels of costs) DaSilva Co. has a casting machine that is used for three of the company’s products. Each setup of the machine costs was $18,760 and the casting machine was set up in June for six different production runs. The following information shows the units of output from each of the setups.
| Setup # Don't use plagiarized sources. Get Your Custom Essay on if total machine setup cost is allocated to all units of product what is the setup c 641308 Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT! | Product #453 | Product #529 | Product #663 |
| 1 | 840 |
|
|
| 2 |
| 22,800 |
|
| 3 |
|
| 12,000 |
| 4 |
| 27,600 |
|
| 5 | 60 |
|
|
| 6 |
| 17,100 |
|
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 DaSilva Co. had manufactured all similar products in a single production run, how would unit and total costs have changed during June? (Round to the nearest cent.)
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