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Assume that company makes only two products: Product A and Product B. The company's activity-based costing system has allocated $60,000 to an activity called machine
Assume that company makes only two products: Product A and Product B. The company's activity-based costing system has allocated $60,000 to an activity called machine setups. It is considering allocating the machine setups cost to its products using either the number of setups or setup hours as the activity measure. It gathered the following data with respect to these two potential activity measures: If the company uses number of machine setups as the activity measure, how much machine setup activity cost would be allocated to Product A
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