A Firm Produces and Sells Two Products, Plus and Max

question 175

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) : Using number of setups as the activity base, the amount of setup cost allocated to each unit of product for Plus and Max, respectively is:

• A) $21.60; $.54.
• B) $54.00; $27.00.
• C) $60.00; $60.00.
• D) $108.00; $2.70.
• E) $200.00; $16,000.00

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