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A Firm Produces and Sells Two Products,Plus and Max

Question 69

Multiple Choice

A firm produces and sells two products,Plus and Max.The following information is available relating to setup costs (a part of factory overhead) : A firm produces and sells two products,Plus and Max.The following information is available relating to setup costs (a part of factory overhead) :   With traditional two-stage allocation of overhead costs,using direct labor hours as the allocation base,the setup cost portion of overhead that is allocated to each unit of product for Plus and Max,respectively is: A) $.80;$.80. B) $3.20;$3.20. C) $4.00;$4.00. D) $160.00;$12,800.00. E) $200.00;$16,000.00. With traditional two-stage allocation of overhead costs,using direct labor hours as the allocation base,the setup cost portion of overhead that is allocated to each unit of product for Plus and Max,respectively is:


A) $.80;$.80.
B) $3.20;$3.20.
C) $4.00;$4.00.
D) $160.00;$12,800.00.
E) $200.00;$16,000.00.

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