How much setup cost will be allocated to each unit

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POINT 1: Ceradyne Electronics manufactures portable power supply units. Ceradyne has recently decided to use an activity-based approach to cost its products. Production line setups is a major activity at Ceradyne. Next year Ceradyne expects to perform 1,930 setups at a total cost of $4,307,760. Ceradyne plans to produce 720 units of product EP150, which will require 2 setups.

QUESTION 1: How much setup cost will be allocated to each unit of EP150 produced?

Reference no: EM132501362

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