Dorpinghaus Corp

Multiple Choice

Dorpinghaus Corp. manufactures two models of its telephones, a standard and a deluxe model. Three activities have been identified as cost drivers and the related costs pooled together to arrive at the following information:

-If activity-based costing is used, then the product setup cost for the standard model would be

A) $51,429.
B) $68,571.
C) $1,071.
D) $120,000.