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Bonita Company manufactures two models of its hammock, the Superior and the Deluxe. The Superior model requires 10000 direct labour hours and the Deluxe requires
Bonita Company manufactures two models of its hammock, the Superior and the Deluxe. The Superior model requires 10000 direct labour hours and the Deluxe requires 39200 direct labour hours. The company produces 5000 units of the Superior model and 1000 units of the Deluxe model each year. The company produces the Superior model in batch sizes of 200, while it produces the Deluxe model in batch sizes of 100. The company expects to incur $126000 of total setup costs this year. How much of the setup costs are allocated to the Superior model using ABC costing? $90000 O $63000 O $21000 O $100000
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