Question
Extracts from cost information of Hebar Corp.: Simple L3 Pack Complex L7 Pack Total Setup cost allocated using direct laborhours $$19,450 $8,550 $28,000 Setup cost
Extracts from cost information of Hebar Corp.:
| Simple L3 Pack | Complex L7 Pack | Total | ||
| Setup cost allocated using direct laborhours | $$19,450 | $8,550 | $28,000 | |
| Setup cost allocated usingsetuphours | $13,800 | $14,200 | $28,000 |
Which of the following statement is true of Hebar's setup costs under traditional costing?
A.L3 pack is overcosted by $5,650
B.L7 pack is undercosted by $5,550
C.L7 pack is overcosted by $5,650
D.L3 pack is undercosted by $ 5,650
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Handbook Of Energy Audits
Authors: Albert Thumann, William J. Younger
6th Edition
0824709985, 978-0824709983
