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Wilson furniture has adpted an ABC system. WIlson produces two products: Tabels and chairs. The following information relates to the fiscal year 20x8. Tables Chairs
Wilson furniture has adpted an ABC system. WIlson produces two products: Tabels and chairs. The following information relates to the fiscal year 20x8.
Tables | Chairs | |
Number of units produced | 1,000 | 4,000 |
Number of Set Ups | 25 | 15 |
Number of Machine Hours | 500 | 700 |
Setup costs vary with the number of setups. Total setuo cost is 6000. How much set up cost should be allocated to each product line under the companys abc system?
Answer choices:
Tables | Chairs | |
A | 2,500 | 3,500 |
B | 3,000 | 3,000 |
C | 3,750 | 2,250 |
D | 1,200 | 4,800 |
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