Assume the Cost Per Setup Remains at $2,000 but That

question 109

Multiple Choice

Assume the cost per setup remains at $2,000 but that the batch size for product Alpha is changed from 10 to 25 units per batch. Using activity-based and a volume-based overhead costing that uses direct labor-hours to assign overhead, the amount of setup cost applied to each unit of product Alpha would be (rounded to the nearest cent) :

• A)Option A
• B)Option B
• C)Option C
• D)Option D
• E)None of the above answers is correct

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Definitions:

U.S. Legislation

Laws and statutes enacted by the legislative branch of the United States government.

Unionize

The process by which workers form or join a union to collectively negotiate with their employer over wages, benefits, and working conditions.

Railway Labor Act

A U.S. federal law enacted in 1926 to prevent interruptions to interstate commerce by providing for the settlement of disputes between railroads and their workers.

Government Mediation

The intervention by government agencies or officials to facilitate the resolution of a dispute between parties, typically in labor disputes.