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Direct labor costs 5,870,000 Setup Costs 630000 Wine Glasses Commemorative Vases

ID: 2433524 • Letter: D

Question

Direct labor costs


5,870,000

Setup Costs


630000

Wine Glasses

Commemorative Vases

Expected production

211,000

units

17,000

units

Direct labor hours required

254,000

DLH

16,400

DLH

Machine setups required

200

setups

800

setups

Cos

Wine glasses



/unit

Vases


/unit

Requirement2:Determine setup costs per unit for the wine glasses andfor the commemorative vases if the setup costs are assigned basedon the number of setups.

Cost

Wine glasses



/unit

Vases


/unit


Direct labor costs


5,870,000

Explanation / Answer

x.j5rong>Requirement 1: Determine the setup cost per unit for the wine glasses and for the commemorative vases if setup costs are assigned using a single plantwide overhead rate based on direct labor hours. ==================================================================================

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