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Franklin Company Uses Activity-Based Costing,and Normally Produces 1,000,000 Units Per

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Franklin Company uses activity-based costing,and normally produces 1,000,000 units per month.At this level of production,the costs per unit are as follows:
Direct materials used $14Direct labor $6 Variable indirect production$1Setup costs $3\begin{array} { l } \text {Direct materials used }&\$14 \\ \text {Direct labor }&\$6 \\ \text { Variable indirect production}&\$ 1\\ \text {Setup costs }&\$3 \\\end{array}

For 1,000,000 units,500 setups are required at a cost of $6,000 per setup.The company has received a special order for 100,000 units at $22 per unit.The company has excess capacity.The company estimates that 5 setups will be required for the special order.What is the cost of the special order?

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Definitions:

Chemoreceptors

Sensory receptors in the body that respond to chemical stimuli, such as taste or smell.

Middle Ear

The air-filled central cavity of the ear, behind the eardrum, containing the three smallest bones in the body that are involved in the transmission of sound vibrations.

Stapes

The smallest bone in the human body, located in the middle ear, playing a critical role in the conduction of sound vibrations to the inner ear.

Oval Window

A membrane-covered opening that leads from the middle ear to the inner ear, playing a key role in the mechanics of hearing.

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