Russell Company Manufactures Two Models of Pens, a Standard and a Deluxe

Multiple Choice

Russell Company manufactures two models of pens, a standard and a deluxe model.Three activities have been identified as cost drivers and the related overhead costs $60,000) pooled together to arrive at the following information: $\begin{array}{cccc} & \begin{array}{c}\text { Number } \\\text { of }\end{array} & \begin{array}{c}\text { Number } \\\text { of }\end{array} & \begin{array}{c}\text { Number } \\\text { of }\end{array} \\\text { Product } & \text { Setups } & \text { Components } & \text { DLH }\\\hline\text { Standard } & 22 & 8 & 375 \\\text { Deluxe } & 28 & 12 & 225 \\& & & \\\text { Costs per pool } & \$ 15,000 & \$ 40,000 & \$ 9,000\end{array}$ If activity?based costing is used, the cost assigned to the deluxe model using the number of components would be _____.

A) $3,600
B) $180
C) $24,000
D) $14,000