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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 overhe Units
A firm produces and sells two products, Plus and Max. The following information is available relating to setup costs (a part of factory overhe Units produced Batch size (units) Number of setups Direct labor hours per unit Total direct labor hours Plus Max 350 16,400 10 400 35 41 5 5 1,750 82,000 Cost per setup Total setup cost $ 1,680 $127, 680 Using number of setups as the activity base, the amount of setup cost allocated to each unit of product for Plus and Max. respectivelv is: Screenshot . now A
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