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why is the answer C 24. Goldman Company has identified the following activities related to indirect production costs: Activity Machine Setup Materials Handling Electric Power
why is the answer C 24. Goldman Company has identified the following activities related to indirect production costs: Activity Machine Setup Materials Handling Electric Power Activity Costs $180,000 $50,000 $20,000 Cost Drivers 1,500 setup hours 12,500 pounds of materials 20,000 kilowatt hours Goldman Company has obtained the following data concerning two products: Number of units produced Direct materials cost Direct labor cost Number of setup hours Pounds of materials used Kilowatt-hours Product A 4,000 $20,000 $12,000 100 500 1,000 Product B 20,000 $25,000 $20,000 120 1,500 2,000 Using activity-based costing, what is the total production cost per unit for Product A? A) $8.00 per unit B) $10.25 per unit C)$11.75 per unit D) $70.50 per unit
why is the answer C
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