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A Firm Produces and Sells Two Products,Mica and Plax

Question 106

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A firm produces and sells two products,Mica and Plax.The following information is available relating to setup costs (a part of factory overhead) :
A firm produces and sells two products,Mica and Plax.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 Mica and Plax,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 Mica and Plax,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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