How would unit and total costs have changed


Levels of costs

Response to the following problem:

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 di?erent production runs. The following information shows the units of output from each of the setups.

Setup # Product #453 Product #529 Product #663
1 840

2
22,800
3

12,000
4
27,600
5 60

6
17,100


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?

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.)

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.)

Solution Preview :

Prepared by a verified Expert
Cost Accounting: How would unit and total costs have changed
Reference No:- TGS02087485

Now Priced at $25 (50% Discount)

Recommended (93%)

Rated (4.5/5)