Alpha Technology produces two products: a high end laptop under the label Excellent Laptops and an inexpensive desktop under the label Outstanding Computers.The two products use two overhead activities, with the following costs:
The controller has collected the expected annual prime costs for each product, the machine hours, the setup hours, and the expected production.

-Calculate Outstanding Computer's consumption ratio for setup hours.(Note: Round answer to two decimal places.)
A) 0.48
B) 0.45
C) 0.90
D) 0.25
E) 0.75

Question

Alpha Technology produces two products: a high end laptop under the label Excellent Laptops and an inexpensive desktop under the label Outstanding Computers.The two products use two overhead activities, with the following costs:  
The controller has collected the expected annual prime costs for each product, the machine hours, the setup hours, and the expected production.

-Calculate Outstanding Computer's consumption ratio for setup hours.(Note: Round answer to two decimal places.)
A) 0.48 
B) 0.45 
C) 0.90 
D) 0.25 
E) 0.75

Quizplus · Accepted Answer

Outstanding's consumption ratio for setup hours = Outstanding's setup hours / Total setup hours = 75 setup hours / (80 setup hours + 75 setup hours) = 0.48

Alpha Technology Produces Two Products: a High End Laptop Under