Question:
(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 #
|
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.)