A Firm Produces and Sells Two Products, Plus and Max $\begin{array}{llcc} \text { Cost per setup } &\$1,080 \\ \text {Total setup cost } &\$64,800\end{array}$

question 44

Multiple Choice

A firm produces and sells two products, Plus and Max. The following information is available relating to setup costs (a part of factory overhead) : $\begin{array}{llcc} \text { Cost per setup } &\$1,080 \\ \text {Total setup cost } &\$64,800\end{array}$
With traditional 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 Plus and Max, 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.

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Definitions:

Ligamentum Ovale

Ligamentum Ovale, often considered a mistake or a non-existing term in human anatomy, should likely refer to ligamentum teres or another specific ligament, as the term itself is not standard.

Ligamentum Arteriosum

Remains of the ductus arteriosus.

Ligamentum Venosus

A fibrous remnant of the fetal ductus venosus that connected the umbilical vein to the inferior vena cava, becoming ligamentous after birth.

APGAR Scores

A quick test performed on a newborn at 1 and 5 minutes after birth to assess the baby's heart rate, respiration, muscle tone, reflex response, and color.