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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 Units
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 setup cost Plus 200 10 20 5 1.000 S1.080 $64.800 Max 16.000 400 40 S 80.000 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. Select one a $2160, S.54 b. $54.00, $27.00 c. $60.00 $60.00 d. $108.00, $2.70 e $200.00 $16,000.00
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