A firm produces and sells two products, Plus and Max. The following information is available relating to setup costs (a part of factory overhead):

PlusMaxUnits produced20016,000Batch size (units)10400Number of setups2040Direct labor hours per unit55Total direct labor hours1,00080,000Cost per setup$1,080Total setup cost$64,800

Using number of setups as the activity base, the amount of setup cost allocated to each unit of product for Plus and Max, respectively is:

$21.60; $.54.

$54.00; $27.00.

$108.00; $2.70.

$60.00; $60.00.

$200.00; $16,000.

A firm produces and sells two products, Plus and Max. The following information is available relating to setup costs (a part of factory overhead): Units produced Batch size (units) Number of setups Direct labor hours per unit Total direct labor hours Cost per setup Total setu p cost Using number of setups as the activity base, the amount of setup cost allocated to each unit of product for Plus and Max, respectively is: 0 $21.60; $.54. O $54.00;$27.00_ 0 $108.00; $2.70. 0 $60.00; $60.00. 0 $200.00; $16,000