Vaughn, Inc The Following Are Two of the Jobs Completed During the Drivers

question 106

Multiple Choice

Vaughn, Inc., has identified the following overhead costs and activity drivers for next year:
$\begin{array}{lrlr}&\text { Expected }&&\text { Expected }\\ \text {Overhead Item}&\text {Cost}& \text {Activity Driver}&\text {Quantity}\\\hline\text { Setup costs } & \$ 200,000 & \text { Number of setups } & 250 \\\text { Ordering costs } & 80,000 & \text { Number of orders } & 1,600 \\\text { Maintenance } & 400,000 & \text { Machine hours } & 2,000 \\\text { Power } & 40,000 & \text { Kilowatt hours } & 40,000\end{array}$
The following are two of the jobs completed during the year:
$\begin{array}{lrr}&\text { Job 10A}&\text { Jab20 E}\\\text { Direct materials } & \$ 3,000 & \$ 4,000 \\\text { Direct labour } & \$ 2,800 & \$ 4,800 \\\text { Units completed } & 100 & 160 \\\text { Direct labour hours } & 50 & 80 \\\text { Number of setups } & 1 & 4 \\\text { Number of orders } & 4 & 5 \\\text { Machine hours } & 20 & 25 \\\text { Kilnwratt houre } & 30 & \$ 5\end{array}$
The company's normal activity is 2,000 direct labour hours.
-Refer to the figure.If the number of setups is used to assign setup costs,what would be the amount of setup costs assigned to Job 10A?

• A)$800
• B)$1,000
• C)$1,600
• D)$1,680

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