Time Bender Company Makes Watches and Clocks Determine the Setup Cost Per Unit for the Watches and Are

question 4

Essay

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
$$\begin{array} { | l | c | c | } \hline & \text { Watches } & \text { Clocks } \\\hline \text { Expected production } & 800,000 & 100,000 \\\hline \text { Direct labor hours needed } & 68,000 D L H & 17,000 D L . H \\\hline \text { Machine setups needed } & 1,000 \text { setups } & 1,000 \text { setups } \\\hline\end{array}$$ 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.)

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Definitions:

Investor

An individual or entity that allocates capital with the expectation of receiving financial returns.

Standard Deviation

Square root of the weighted average of the squares of the deviations of the payoffs associated with each outcome from their expected values.

Over-precision

A cognitive bias causing someone to be too confident in their own judgments and decisions.

Predict Outcomes

The process of forecasting the possible results of a particular situation or decision.