Tandem Company Manufactures Two Products (D and F) What Is the Allocation Rate Per Setup Using Activity-Based Costing

Multiple Choice

Tandem Company manufactures two products (D and F) . The overhead costs ($84,000) have been divided into three cost pools that use the following activity drivers: $\begin{array}{cccc}\text { Product } & \text { Number of Setups} & \text { Machine Hours} & \text { Packing Orders }\\\hline \mathrm{D} & 10 & 500 & 75 \\\text { F } & 10 & 2,000 & 175 \\\text { Cost perpool } & \$ 11,000 & \$ 60,000 & \$ 18,750\end{array}$ What is the allocation rate per setup using activity-based costing?

A) $ 550
B) $1,100
C) $11,000
D) $2,200