Business, 17.02.2022 21:20 ghollins

McKinney Company produces 50,000 units of Product Q and 6,000 units of Product Z during a period. In that period, four set-ups were required for color changes. All units of Product Q are black, which is the color in the process at the beginning of the period. A set-up was made for 1,000 blue units of Product Z; a set-up was made for 4,500 red units of Product Z; a set-up was made for 500 green units of Product Z. A set-up was then made to return the process to its standard black coloration and the units of Product Q were run. Each set-up costs $500. Refer to McKinney Company. Assume that McKinney Company has decided to allocate overhead costs using levels of cost drivers. Required:
What would be the approximate per-unit set-up cost for the blue units of Product Z?

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McKinney Company produces 50,000 units of Product Q and 6,000 units of Product Z during a period. In...

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