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Time Bender Company Makes Watches and Clocks

Question 223

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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
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.) 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.)

Correct Answer:

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Watches:
68,000 DLH/85,000 DLH x $190,00...

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