Julia Company uses the FIFO method in its process costing system. Beginning inventory in the mixing department consisted of 6,000 units that were 75% complete with respect to conversion costs. Ending work in process inventory consisted of 5,000 units that were 60% complete with respect to conversion costs. If 12,000 units were transferred to the next department during the period, the equivalent units for conversion cost would be:

a.

10,500 units

b.

13,000 units

c.

13,500 units

d.

12,500 units

Original company manufactures two models of juice, Big model and Small model. The Following activity and cost information has been compiled: Number of setups 3 setups for Big and 7 setups for Small, number of components 30 and 50 respectively and number of direct labor hours 650 and 150 respectively. Assume an activity-based costing system is used and that the number of setups identified as the activity-cost driver for $20,000 overhead, and the number of components are identified as the activity-cost driver for $60,000 overhead. the total amount of overhead costs assigned to the Big model is:

a.

$28,500.

b.

$51,500.

c.

$60,000.

d.

$65,000.