Biology Forums - Study Force

A firm produces and sells two products, Standard and Deluxe. The following information relates to setup costs of $180,000 (a part of factory overhead).

​	Standard	Deluxe
Units produced	1,600	1,600
Number of setups	100	125
Direct labor hours per unit	9	9
Total direct labor costs	$9,000	$9,000

Activity-based costing will allocate which of the following amounts of setup cost to each unit (rounded to the nearest dollar)?

Standard

Deluxe

▸

$56

$56

▸

50

63

▸

356

444

▸

126

101

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