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

question 169

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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