Time Bender Company makes watches and clocks. The following estimated data are available for the company's next fiscal year:
Total direct labor costs: $1,700,000
Total setup costs: $190,000
Determine the setup cost per unit for the watches and the clocks if setup costs are assigned using a plantwide overhead rate based on direct labor hours. (Round to two decimal places.)

Question

Time Bender Company makes watches and clocks. The following estimated data are available for the company's next fiscal year:
Total direct labor costs: $1,700,000
Total setup costs: $190,000
  Determine the setup cost per unit for the watches and the clocks if setup costs are assigned using a plantwide overhead rate based on direct labor hours. (Round to two decimal places.)

Quizplus · Accepted Answer

The Answer of Time Bender Company makes watches and clocks. The following estimated data are available for the company's next fiscal year:
Total direct labor costs: $1,700,000
Total setup costs: $190,000
  Determine the setup cost per unit for the watches and the clocks if setup costs are assigned using a plantwide overhead rate based on direct labor hours. (Round to two decimal places.)

Time Bender Company Makes Watches and Clocks