Question
Alpha Technology produces two products: a high-end laptop under the label Excellent Laptops and an inexpensive desktop under the label Outstanding Computers. The two products
Alpha Technology produces two products: a high-end laptop under the label Excellent Laptops and an inexpensive desktop under the label Outstanding Computers. The two products use two overhead activities, with the following costs: Setting up equipment $3,000 Machining $15,000 The controller has collected the expected annual prime costs for each product, the machine hours, the setup hours, and the expected production. Excellent Laptops Outstanding Computers Direct Labor $25,000 $10,000 Direct Materials $20,000 $5,000 Expected Production in Units 3,000 3,000 Machine Hours 850 2,000 Setup Hours 80 75 Calculate Outstanding Computer's consumption ratio for setup hours. (Note: Round your answer to two decimal places.) a.0.25 b.0.48 c.0.75 d.0.45 e.0.90
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