Assume Processing Costs Are Allocated on the Basis of Number

Multiple Choice

Assume processing costs are allocated on the basis of number of machine setups. How much processing cost will be allocated to each product line?

A) $5,000 to each product line
B) $7,500 each to orange juice concentrate and orange popsicles, and $15,000 to orange juice
C) $10,000 to each product line
D) None of the above