If total machine setup cost is allocated to all units of pro…
(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.)
