Question
Extracts from cost information of XYZ Corp.: Simple Pack Complex Pack Total Setup cost allocated using direct labor-hours $4,600 $15,400 $20,000 Setup cost allocated using
Extracts from cost information of XYZ Corp.:
|
| Simple Pack | Complex Pack | Total |
| Setup cost allocated using direct labor-hours | $4,600 | $15,400 | $20,000 |
| Setup cost allocated using setup-hours | $9,280 | $10,750 | $20,000 |
Assuming that setup-hours is considered a more effective cost drive for allocating setup costs than direct labor-hours. Which of the following statements is true of XYZ's setup costs under traditional costing?
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Management Accounting Information For Decision Making
Authors: Anthony A. Atkinson
7th Edition
1618533517, 9781618533517
