Final answer:
Radakovich Corporation manufactures 230 units of product F60N per year, with 480 machine hours and 50 orders processed. The company has a total manufacturing overhead cost of $750,000.
Step-by-step explanation:
Radakovich Corporation manufactures 230 units of product F60N in a year, which requires a total of 480 machine hours. They process 50 orders for this product annually. The company manufactures 80 different products, and the total manufacturing overhead costs are $750,000. The question relates to the Radakovich Corporation and its application of activity-based costing (ABC). The corporation produces 230 units of product F60N a year, which requires 480 machine hours and processes 50 orders annually. The company offers a variety of 80 products and has total manufacturing overhead costs of $750,000. In this context, calculating the cost per unit or analyzing the cost drivers for manufacturing product F60N can assist in understanding the company's cost structure. For example, given the data provided on labor and machine costs, if labor costs $24 an hour and machine operation costs are also given, the company would be interested in optimizing these expenses to minimize the total cost of production for F60N or other products. Factor in the possibility of changes in labor wages due to union negotiations, and the firm is faced with strategic decisions on the use of labor versus machinery to maintain cost-efficiency.