Virgo is a manufacturer of office furniture. Virgo uses large molding machines to produce its fiberglass molded chair seats. The chairs are then covered with a protective glaze, connected to the chair legs, packaged and shipped. The following data pertain to setting up a molding machine. Annual setup costs total $150,000. The machine has to be set up for the following models: childs desk chair, regular desk chair, super-model desk chair.

Model	Number of setups per year	Hours per setup
Childs desk chair	15	8
Regular desk chair	30	12
Super-model desk chair	5	20

Required:

1. Suppose Virgo allocates setup costs to products using the number of setups as the allocation basis. What is the setup cost allocated to the super-model desk chair?
2. Suppose Virgo allocates setup costs to products using the total number of setup hours as the allocation basis. What is the setup cost allocated to the regular desk chair?