Scarff,Inc

Multiple Choice

Scarff,Inc. ,manufactures and sells two products: Product O6 and Product K2.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The direct labor rate is $23.20 per DLH.The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools,activity measures,and expected activity:

A) $88.19 per setup
B) $123.06 per setup
C) $119.55 per setup
D) $53.69 per setup