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Calculate the budgeted machine set up cost

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Reference no: EM132203282

QR uses an activity based budgeting (ABB) system to budget product costs. It manufactures two products, product Q and product R. The budget details for these two products for the forthcoming period are as follows:

                                                                                              Product Q                      Product R

Budgeted production (units)                                           80,000                             120,000

No. of machines set ups per batch size (units)                       4                                          2

Total budgeted cost of setting up the machines is $74,400

Calculate the budgeted machine set up cost per unit of product Q.

Reference no: EM132203282

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