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Timothy Company manufactures two models of pens, a standard model and a deluxe model. Three activities have been identified in the production of the pens.
Timothy Company manufactures two models of pens, a standard model and a deluxe model. Three activities have been identified in the production of the pens. The following information is available:
Product | Number of Setups | Number of Components | Number of Direct Labor Hours |
Standard | 22 | 8 | 375 | |
Deluxe | 28 | 12 | 225 |
Cost Pool | Total Costs | Cost Driver |
Setup Costs | $30,000 | Number of setups | ||
Assembly Costs | $36,000 | Number of components | ||
Labor Costs | $9,000 | Number of direct labor hours |
If activityminusbased costing is used, the setup cost assigned to the standard model is ________.
$13,200 B. $33 C. $44,000 D. $8,400
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