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Question: exercise 615 runner electronics manufactures portable power supply units runner...

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Exercise 6-15

Runner Electronics manufactures portable power supply units. Runner has recently decided to use an activity-based approach to cost its products. Production line setups is a major activity at Runner. Next year Runner expects to perform 1,990 setups at a total cost of $2,507,400. Runner plans to produce 700 units of product EP150, which will require 2 setups.

How much setup cost will be allocated to each unit of EP150 produced? (Round answer to 2 decimal places, e.g. 15.25.)

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