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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

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 produced20016,400Batch size (units)5410Number of setups4040Direct labor hours per unit66Total direct labor hours1,20098,400

Cost per setup$1,992Total setup cost$159,360

Using direct labor hours as the allocation base, the setup cost portion of overhead that is allocated to each unit of product for Plus and Max, respectively is:

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