Bishop, Inc. uses activity-based costing. The company produces X and Y. Information relating to the two products is as follows:

Setup costs will be allocated to products at the rate of:

		A. $48 per setup
		B. $15 per setup
		C. $57 per setup
		D. $36 per setup

X Y 38000 50000 15000 17000 Units produced Machine-hours Direct labor-hours Materials handling (number of moves) Setups 16000 24000 12000 16000 20000 16000 The following cost pools have been identified: Activity Cost driver Materials handling Number of moves Labor-related overhead Direct labor hours Total cost 504000 560000 Setups Number of setups 540000