Performance Bicycle Company Makes Steel and Titanium Handle Bars for Bicycles.It

Multiple Choice

Performance Bicycle Company makes steel and titanium handle bars for bicycles.It requires approximately 1 hour of labor to make one handle bar of either type.During the most recent accounting period,Barr Company made 7,000 steel bars and 3,000 titanium bars.Setup costs amounted to $84,000.One batch of each type of bar was run each month.If a single company-wide overhead rate based on direct labor hours is used to allocate overhead costs to the two products,the amount of setup cost assigned to the steel bars will be:

A) $8,400.
B) $84,000.
C) $49,000.
D) $58,800.