Assume the cost per setup remains at $2,000 but that the batch size for product Alpha is changed from 10 to 25 units per batch. Using activity-based and a volume-based overhead costing that uses direct labor-hours to assign overhead, the amount of setup cost applied to each unit of product Alpha would be (rounded to the nearest cent):
A)Option A
B)Option B
C)Option C
D)Option D
E)None of the above answers is correct

Question

Assume the cost per setup remains at $2,000 but that the batch size for product Alpha is changed from 10 to 25 units per batch. Using activity-based and a volume-based overhead costing that uses direct labor-hours to assign overhead, the amount of setup cost applied to each unit of product Alpha would be (rounded to the nearest cent): 
A)Option A 
B)Option B 
C)Option C 
D)Option D 
E)None of the above answers is correct

Quizplus · Accepted Answer

The Answer of Assume the cost per setup remains at $2,000 but that the batch size for product Alpha is changed from 10 to 25 units per batch. Using activity-based and a volume-based overhead costing that uses direct labor-hours to assign overhead, the amount of setup cost applied to each unit of product Alpha would be (rounded to the nearest cent): 
A)Option A 
B)Option B 
C)Option C 
D)Option D 
E)None of the above answers is correct

Assume the Cost Per Setup Remains at $2,000 but That