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

question 31

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

$$\begin{array} { | l | l | l | } \hline & \text { Watches } & \text { Clocks } \\\hline \text { Expected production } & 800,000 & 100,000 \\\hline \text { Direct labor hours needed } & 68,000 \mathrm { DLH } & 17,000 \mathrm { DLH } \\\hline \text { Machine setups needed } & 1,000 \text { setups } & 1,000 \text { setups } \\\hline\end{array}$$

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:

Passive Management

A leadership style characterized by minimal intervention, letting processes and issues unfold or resolve naturally without active direction.

Contingent Reward

A leadership strategy that offers rewards or incentives based on the achievement of specific goals or performance criteria.

Political Conflict

Disagreements or disputes that arise from differences in views, interests, or goals related to governance, policies, or political ideologies.

Ideological Conflict

Disagreements or disputes arising from deeply held beliefs or values between individuals or groups.