A Firm Produces and Sells Two Products, Mica and Plax

Multiple Choice

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.