A Firm Produces and Sells Two Products,Plus and Max

question 59

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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Definitions:

Word-processing Software

Computer software designed to create, edit, format, and print written documents.

Total Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Fashion Retailer

A business that sells clothes, accessories, and sometimes footwear, typically specializing in current fashion trends and styles.

Outlets

Points from which goods are sold or distributed; also refers to ways in which energy or emotions can be expressed.