A firm produces and sells two products,Plus and Max.The following information is available relating to setup costs (a part of factory overhead): Using number of setups as the activity base,the amount of setup cost allocated to each unit of product for Plus and Max,respectively is:
A)$21.60;$.54.
B)$54.00;$27.00.
C)$60.00;$60.00.
D)$108.00;$2.70.
E)$200.00;$16,000.

Question

A firm produces and sells two products,Plus and Max.The following information is available relating to setup costs (a part of factory overhead):  Using number of setups as the activity base,the amount of setup cost allocated to each unit of product for Plus and Max,respectively is:
A)$21.60;$.54. 
B)$54.00;$27.00. 
C)$60.00;$60.00. 
D)$108.00;$2.70. 
E)$200.00;$16,000.

Quizplus · Accepted Answer

The Answer of A firm produces and sells two products,Plus and Max.The following information is available relating to setup costs (a part of factory overhead):  Using number of setups as the activity base,the amount of setup cost allocated to each unit of product for Plus and Max,respectively is:
A)$21.60;$.54. 
B)$54.00;$27.00. 
C)$60.00;$60.00. 
D)$108.00;$2.70. 
E)$200.00;$16,000.

A Firm Produces and Sells Two Products,Plus and Max