Essay
Magill Corporation manufactures Products A and B. Each equipment setup costs $2,000. During 2010, Magill had 15 equipment setups during the year: four to make Product A and 11 to make Product B. Magill produced 1,000,000 and 500,000 units of Products A and B, respectively.
Required:
a. Assume Magill treats setup as a unit-level cost. How much total setup cost is assigned to Products A and B? How much cost is assigned on a per-unit basis for Product A and Product B?
b. Assume Magill treats setup as a batch-level cost. How much per-unit setup cost is assigned to Product A and to Product B?
Correct Answer:
Verified
a. $2,000 x 15 = $30,000
$30,000 ÷ 1,50...View Answer
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Correct Answer:
Verified
$30,000 ÷ 1,50...
View Answer
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Get Access to more Verified Answers free of charge
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