A firm produces and sells two products, Plus and Max. The following information is available relating to setup costs (a part of factory overhead): Plus Max Units produced 200 16,400 Batch size (units) 5 410 Number of setups 40 40 Direct labor hours per unit 6 6 Total direct labor hours 1,200 98,400 Cost per setup $ 1,992 Total 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:

Multiple Choice

• $1.60; $1.60.

• $15.36; $15.36.

• $9.60; $9.60.

• $320.00; $26,240.00.

• $200.00; $16,400.00.