a) Power Electronics manufactures portable power supply units. Power has recently decided to use an activity- based approach to cost its products. Production line setups is a major activity at Power. Next year Power expects to perform 2,000 setups at a total cost of $4,000,000. Power plans to produce 800 units of product EP15O, which will require two setups.
Required:
1. How much setup cost will be allocated to each unit of EP150 produced?